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A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2022 · Q291 Mark

A business makes and sells a single product. The budget for sales of 5000 units is as follows: per unit: selling price: 75.00 variable production cost: 25.00 fixed production cost: 18.90 variable selling expenses: 5.00 The company plans to reduce the selling price to $60 per unit. How many extra units will need to be sold to break even?

A810
B1050
C2100
D3150

✓ Correct answer

B: 1050

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About this question

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 29.

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