A-LevelAccountingCost-Volume-Profit AnalysisFeb/Mar 2025Paper 1 Q281 Mark

The following information was provided about a product. selling price per unit: $50 variable cost per unit: $26 total fixed costs: $10000 demand: 1800 units If the selling price increases, only demand changes. When the selling price increased by $4, profit fell by $1200. What was the decrease in demand?

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

The correct answer is B: 300 units.

Q: What topic does this question test?

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

A214 units

B300 units

C571 units

D657 units

✓ Correct Answer

The correct answer is B: 300 units

📋 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 Cost-Volume-Profit 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 2025 examination, Paper 1 Variant 2.

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