A-LevelAccountingCosting / Cost-Volume-Profit (CVP) AnalysisMay/June 2020Paper 1 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
The correct answer is C. This question tests the candidate's understanding of costing / cost-volume-profit (cvp) 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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