A-LevelAccountingBudgeting and Decision MakingFeb/Mar 2019Paper 1 Q261 Mark
The following information is available in respect of a product. per unit $ selling price 25 variable costs 15 contribution 10 Production is 50 000 units. The fixed costs are $300000. The margin of safety is 20000 units. The directors propose to increase the unit selling price by 10%. What will be the percentage increase in the margin of safety?
A13.6%
B20%
C30%
D36.4%
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of budgeting and decision making 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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