A-LevelAccountingCosting / Cost-Volume-Profit (CVP) AnalysisFeb/Mar 2024Paper 1 Q291 Mark

A company has the following budgeted information per unit. $: selling price 25 variable costs 10 Fixed costs are $72 000. What is the increase in break-even sales if fixed costs increase by 33 1/3%?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is B: $40 000.

Q: What topic does this question test?

This question tests Costing / Cost-Volume-Profit (CVP) Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A$38 400

B$40 000

C$53 333

D$60 000

✓ Correct Answer

The correct answer is B: $40 000

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Costing / Cost-Volume-Profit (CVP) Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2024 examination, Paper 1 Variant 2.

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