A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2022 · Q271 Mark

A business manufactures and sells a single product. It is sold for $10 per batch. The variable cost is $4 per batch. Fixed costs are absorbed based on a normal activity level of 5000 batches at $1 per batch. What is the profit, using marginal costing, if the company makes and sells 6000 batches?

A$24000

B$30000

C$31000

D$36000

✓ Correct answer

C: $31000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2022 Paper 1 Variant 2, question 27.

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