A-LevelAccountingDecision MakingMay/June 2025Paper 1 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
The correct answer is D. This question tests the candidate's understanding of decision making within the Accountingsyllabus. The examiner's mark scheme requires...
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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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