A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2021 · Q281 Mark

Details for two products made by a company were as follows. Product X $Selling price per unit: 13 Variable cost per unit: 11 Product Y $Selling price per unit: 8 Variable cost per unit: 4 The company could sell a maximum of 11000 units of X and 9000 units of Y. However, the company cannot produce more than 10000 units of X and Y together due to production constraints. Which production mix will maximise profits?

A10000 (units of X), 0 (units of Y)

B1000 (units of X), 9000 (units of Y)

C9000 (units of X), 1000 (units of Y)

D5000 (units of X), 5000 (units of Y)

✓ Correct answer

B: 1000 (units of X), 9000 (units of Y)

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2021 Paper 1 Variant 2, question 28.

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