4. Cost and Management Accounting

Marginal Costing — Quiz

Test your understanding of marginal costing with 5 practice questions.

Practice Questions

Question 1

What is the contribution margin if a product sells for $$ \$50 $ and has variable costs of $ \$30 $$?

Question 2

A company has fixed costs of $$ \$5,000 $ and a contribution margin of $ \$10 $$ per unit. How many units must be sold to break even?

Question 3

If a product's selling price is $$ \$25 $ and its variable cost is $ \$15 $$, what is the contribution per unit?

Question 4

Which of the following is a limitation of marginal costing?

Question 5

A company has total sales of $$ \$60,000 $, variable costs of $ \$30,000 $, and fixed costs of $ \$20,000 $$. What is the total contribution?