A-LevelAccountingCost-Volume-Profit (CVP) AnalysisOct/Nov 2019Paper 1 Q281 Mark
Last month a company made and sold 10000 units and earned a contribution of $20 per unit. Its final profit, after deducting total fixed costs, was $120000. This month its sales volume has increased by 20%, its contribution per unit has increased by 5% and its total fixed costs have increased by 15%. What is its profit this month?
A$118000
B$148000
C$160 000
D$172000
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of cost-volume-profit (cvp) analysis within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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