A-LevelAccountingCosting (Break-even Analysis)Oct/Nov 2017Paper 1 Q291 Mark

A product has a variable cost of $31.32 per unit. Total fixed costs are $93600. When production is 13000 units the margin of safety is 5000 units. What is the selling price per unit?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: $43.02.

Q: What topic does this question test?

This question tests Costing (Break-even Analysis) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$36.52

B$38.52

C$43.02

D$50.04

✓ Correct Answer

The correct answer is C: $43.02

📋 Examiner Report & Trap Analysis

Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Costing (Break-even Analysis) in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2017 examination, Paper 1 Variant 2.

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