A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2019 · 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

D: $172000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 28.

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