A-LevelAccountingTraditional costing methods9706/12 · May/June 2021 · Q281 Mark
The following information is available for a month. per unit $ selling price 100 contribution 30 Total fixed costs were $100000 and budgeted sales were 5000 units. The directors think that if they reduce the unit selling price to $95, sales will increase to 6500 units a month. What would be the increase in profit as a result of this?
A$12500
B$32500
C$45000
D$77500
✓ Correct answer
A: $12500
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