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Published
8 May 2023
Last updated
28 May 2026

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Given a fixed cost of $80,000 and a break-even sales volume of 200 units, what is the contribution margin earned per unit?

Multiple choice question for Cost Volume Profit Analysis. Select an option, then review the explanation below.

Choose the correct answer

Explanation

To find the contribution margin per unit, divide the total fixed cost by the number of units at break-even: $80,000 ÷ 200 units = $400 per unit.

Practice related questions from the same subject.

  1. 1.What is obtained when the fixed costs are divided by the contribution margin per unit?
  2. 2.Given a contribution margin ratio of 30% and a selling price of $5,000, what is the contribution margin amount for each unit?
  3. 3.Given a contribution margin of $13,000 and total variable costs amounting to $7,000, what is the total revenue?
  4. 4.Given a selling price of $5000 and a contribution margin per unit of $1000, what is the contribution margin percentage?
  5. 5.Given a revenue of $15,000, variable costs totaling $5,000, and fixed costs amounting to $2,000, what is the operating income?

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If the break-even number of units are 200 units and the fixed cost is $80000, then the contribution margin per unit will be __________? - PakMcqs | PakQuizHub