A-LevelAccountingTraditional costing methods9706/12 · May/June 2017 · Q251 Mark

A company manufactures and sells chairs. The following per unit information is available. $ selling price 25 direct material and labour 12 other variable production costs 3 variable selling costs 2 fixed costs 4 The company has the option of buying in the chairs for resale instead of making them. At which purchase price would the company's profit be unchanged?

A$15

B$17

C$19

D$21

✓ Correct answer

A: $15

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2017 Paper 1 Variant 2, question 25.

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