A-LevelAccountingDecision Making (Break-even Analysis)May/June 2016Paper 1 Q291 Mark
The break-even sales of a company are 1000 units when the variable costs are $30000 and fixed costs are $20000. What is the profit if 70 units above the break-even point are sold?
A$700
B$1400
C$2100
D$3500
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of decision making (break-even analysis) within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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