A-LevelAccountingDecision Making (Limiting Factors)Oct/Nov 2021Paper 1 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
The correct answer is B. This question tests the candidate's understanding of decision making (limiting factors) 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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