A-LevelAccountingDecision MakingFeb/Mar 2022Paper 1 Q291 Mark
A company provides the following information about its product. selling price $100, variable cost per unit $40, fixed costs $21600, break-even point 360 units. If the business changes its production method, contribution will increase by 10% and fixed costs will increase by 5%. What would be the effect on the break-even point?
Adecrease by 16 units
Bdecrease by 18 units
Cincrease by 16 units
Dincrease by 18 units
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of decision making within the Accountingsyllabus. The examiner's mark scheme requires...
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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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