A-LevelAccountingCostingMay/June 2023Paper 1 Q281 Mark
A business has the following information about a type of product. current production and sales 8000 units unit selling price $20 unit variable cost $12 total fixed costs $25000 What will happen to the break-even point and the margin of safety if fixed costs increase to $32000?
Adecrease by 875 units
decrease by 875 units
Bdecrease by 875 units
increase by 875 units
Cincrease by 875 units
decrease by 875 units
Dincrease by 875 units
increase by 875 units
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of costing 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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