A-LevelAccountingDecision MakingFeb/Mar 2017Paper 1 Q281 Mark
The following information is for a business. Budgeted fixed costs per month $2000; target profit per month $3000; budget variable cost per unit $15; selling price per unit $40. Fixed costs are expected to increase by $500 per month and variable costs increase by $5 per unit. Which value of revenue will be required to achieve the target profit?
A$8000
B$8800
C$10000
D$11000
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of decision making within the Accountingsyllabus. The examiner's mark scheme requires...
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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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