Correct option is B
Calculate the Variable Cost:
Variable Cost = Sales × Variable Cost to Sales Ratio
Variable Cost = ₹90,000 × 75% = ₹67,500
Calculate the Contribution:
Contribution = Sales - Variable Cost
Contribution = ₹90,000 - ₹67,500 = ₹22,500
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Question
If sales are 90,000 and variable cost to sales is 75%, contribution is
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