A-LevelAccountingBudgeting and Decision MakingMay/June 2021Paper 1 Q291 Mark

A business makes and sells a single product. It has a selling price of $100 and a contribution per unit of $40. When output is 500 units, the business makes a profit of $2000. The direct material price is expected to rise by $4 per unit. How many units will need to be made and sold for the profit to be unchanged?

Q: What topic does this question test?

This question tests Budgeting and Decision Making in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A450

B455

C550

D556

✓ Correct Answer

The correct answer is D: 556

📋 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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Accounting Question

Topic

This multiple-choice question tests Budgeting and Decision Making in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2021 examination, Paper 1 Variant 2.

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