A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2022 · 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

A: decrease by 16 units

Oracle Prep sorts past-paper questions by topic, so you can drill Traditional costing methods and see which topics are most likely to come up next.

Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Feb/Mar 2022 Paper 1 Variant 2, question 29.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content