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?

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

The correct answer is D: $172000.

Q: What topic does this question test?

This question tests Cost-Volume-Profit (CVP) Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$118000

B$148000

C$160 000

D$172000

✓ Correct Answer

The correct answer is D: $172000

📋 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 Cost-Volume-Profit (CVP) 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 2019 examination, Paper 1 Variant 2.

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