A-LevelAccountingTraditional costing methods9706/12 · May/June 2021 · 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

D: 556

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2021 Paper 1 Variant 2, question 29.

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