A-LevelAccountingBreak-even AnalysisMay/June 2019Paper 1 Q291 Mark
Last year a company sold 2000 units and made a contribution of $50 per unit. Profit, after deducting total fixed costs, was $60000. This year: sales volume increased by 10% contribution per unit decreased by 5% total fixed costs increased by 25%. What was the company's profit this year?
A$45000
B$54 500
C$60000
D$64 500
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of 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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