A-LevelAccountingTraditional costing methods9706/12 · May/June 2024 · Q291 Mark

The details of a planned college course are as follows: course fee per student $100 variable course cost per student $20 total fixed costs of the course $480 The budgeted number of students is 10. However, if a lower fee is charged, 20 students are likely to take the course. How much should the course fee of $100 be reduced by to earn the same total profit from 10 students as from 20 students?

A$16

B$24

C$40

D$50

✓ Correct answer

C: $40

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2024 Paper 1 Variant 2, question 29.

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