A-LevelAccountingTraditional costing methods9706/12 · May/June 2020 · Q291 Mark

A manufacturer produces a single product. The following information is available. [Table with 'selling price per unit' $14, 'variable costs per unit' $8, 'fixed costs per annum' $96000] There are plans to reduce the selling price by $3 per unit and to reduce variable costs by $1 per unit. Fixed costs will remain unchanged. What will be the new break-even point?

A9600 units

B12000 units

C24000 units

D48000 units

✓ Correct answer

C: 24000 units

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2020 Paper 1 Variant 2, question 29.

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