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?
A450
B455
C550
D556
✓ Correct Answer
The correct answer is D. This question tests the candidate's understanding of budgeting and decision making 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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