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?

Q: What topic does this question test?

This question tests Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

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: increase by 875 units decrease by 875 units

📋 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 Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting May/June 2023 examination, Paper 1 Variant 2.

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