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A-LevelAccountingBudgeting and Decision MakingFeb/Mar 2019Paper 1 Q291 Mark

The budgeted information for one month is shown. units sales 20000 selling price per unit $12 variable cost per unit $3 fixed costs $50000 It is expected that the number of units sold will increase by 10%. Fixed costs will increase by 5%. What is the increase in profit as a result of these changes?

A$15500
B$18000
C$20500
D$21500

✓ Correct Answer

The correct answer is A. 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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About This A-Level Accounting Question

This multiple-choice question appeared in the Cambridge A-Level Accounting (9706) Feb/Mar 2019 examination, Paper 1 Variant 2. It tests the topic of Budgeting and Decision Making and is worth 1 mark.

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