A-LevelAccountingTraditional costing methods9706/12 · May/June 2019 · 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

B: $54 500

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2019 Paper 1 Variant 2, question 29.

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