A-LevelAccountingCost-Volume-Profit (CVP) AnalysisFeb/Mar 2020Paper 1 Q291 Mark
A company is forecasting its profits at two levels of activity. sales units: 5000 units, 8000 units total fixed and variable costs: $20000, $26000 profit: $15000, $30000 sales revenue: $35000, $56000 Fixed costs and selling prices are unchanged within the above activity range. What is the forecast profit if sales were 7000 units?
A$21000
B$25000
C$26000
D$26 250
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of cost-volume-profit (cvp) analysis 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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