DEC Limited has produced the following information for the current financial year.

department X department Y
$ $
revenue 54 000 26000
cost of sales 23700 16600
gross profit 30 300 9400

The rent and insurance of buildings total is $13000. Heating and lighting total is $12500.

The floor area occupied by each department: X 60%, Y 40%.

What is the profit or loss for the year for department Y?

Q: What topic does this question test?

This question tests Financial Statements of Sole Traders in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting May/June 2015 examination, Paper 1 Variant 2 (9706_s15_qp_12.pdf).

Question

DEC Limited has produced the following information for the current financial year.

department X   department Y
$              $ 
revenue            54 000         26000
cost of sales      23700          16600
gross profit       30 300         9400

The rent and insurance of buildings total is $13000. Heating and lighting total is $12500.

The floor area occupied by each department: X 60%, Y 40%.

What is the profit or loss for the year for department Y?

Oracle Prep · Accepted Answer

The correct answer is A: $800 loss.

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