Meesha provided the following information for her first year of trading.

$
sales (1000 units at $10 each) 10000
cost of sales (1000 units at $4.50 each) 4500
gross profit 5500

In her second year of trading, Meesha reduced the selling price and sold 1500 units. Her gross profit decreased by $250. There was no change in the cost per unit.
What was the total value of sales in the second year of trading?

Q: What topic does this question test?

This question tests Analysis and interpretation in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2020 examination, Paper 1 Variant 2 (7707_w20_qp_12.pdf).

Question

Meesha provided the following information for her first year of trading.

$
sales (1000 units at $10 each)	10000
cost of sales (1000 units at $4.50 each)	4500
gross profit	5500

In her second year of trading, Meesha reduced the selling price and sold 1500 units. Her gross profit decreased by $250. There was no change in the cost per unit.
What was the total value of sales in the second year of trading?

Oracle Prep · Accepted Answer

The correct answer is C: $12000.

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