A-LevelAccountingTraditional costing methods9706/12 · May/June 2025 · Q291 Mark

The following information is available for a business. budgeted fixed costs per month $2000 target profit per month $3000 budget variable cost per unit $15 selling price per unit $40 Fixed costs are expected to increase by $500 per month, and variable costs are expected to increase by $5 per unit. Which value of revenue will be required to achieve the target profit?

A$8000

B$8800

C$10000

D$11000

✓ Correct answer

D: $11000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2025 Paper 1 Variant 2, question 29.

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