A-LevelAccountingTraditional costing methods9706/12 · May/June 2011 · Q271 Mark

What do the break-even charts show regarding the profitability of and risk attaching to products 1 and 2? [Break-even chart for product 1] [Break-even chart for product 2]

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Aprofitability 1 is greater, risk 1 is greater

Bprofitability 1 is greater, risk 1 is less

Cprofitability 2 is greater, risk 2 is greater

Dprofitability 2 is greater, risk 2 is less

✓ Correct answer

B: profitability 1 is greater, risk 1 is less

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2011 Paper 1 Variant 2, question 27.

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