A-LevelAccountingTraditional costing methods9706/12 · May/June 2015 · Q291 Mark

A company is forecasting its profits at two levels of activity. sales units sales units 5000 8000 $ $ total fixed and variable costs 20000 26000 profit 15000 30000 sales revenue 35000 56000 Fixed costs and selling prices are unchanged within the above activity range. What is the forecast profit if sales were 7000 units?

A$21000

B$25000

C$26.000

D$26250

✓ Correct answer

B: $25000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2015 Paper 1 Variant 2, question 29.

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