students zone

Chapter 17b - Muliple-choice questions

1. Product A has a selling price of £10 and variable costs of £6 per unit. The business plans to sell 1,000 units. The total contribution for Product A is:
   1.   ?    £1,000
   2.   ?    £2,000
   3.   ?    £3,000
   4.   ?    £4,000
2. The same business also plans to sell 1,000 units of Product B, which has a selling price of £6 and variable costs of £3. The total contribution for Product B is:
   1.   ?    £1,000
   2.   ?    £2,000
   3.   ?    £3,000
   4.   ?    £4,000
3. The same business also plans to sell 1,500 units of Product C, which has a selling price of £5 and a contribution of £2 per unit. The total contribution of Product C is:
   1.   ?    £3,000
   2.   ?    £4,500
   3.   ?    £7,500
   4.   ?    £10,500
4. If the above products A, B and C are ranked according to total contribution, Product C is ranked:
   1.   ?    1st
   2.   ?    2nd
   3.   ?    3rd
   4.   ?    Equal with Product A
5. Product A above uses materials that are in short supply. The variable cost per unit of the limiting factor is £2. The contribution per limiting factor for Product A is:
   1.   ?    £1
   2.   ?    £2
   3.   ?    £3
   4.   ?    £4
6. Product C above requires the same raw materials that are in short supply. The variable cost per unit of the limiting factor is £2. The contribution per limiting factor for Product C is:
   1.   ?    £1.50
   2.   ?    £2.50
   3.   ?    £3.50
   4.   ?    £4.50