A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2020 · Q261 Mark

A company sells a single product for $24 per unit. The variable cost is $8 per unit. Fixed costs have been absorbed based on a normal activity level of 1000 units at $6 per unit. What is the profit under marginal costing if the company makes and sells 1250 units?

A$10000

B$12500

C$14000

D$20000

✓ Correct answer

C: $14000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2020 Paper 1 Variant 2, question 26.

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