A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2009 · Q271 Mark

A company has a product which sells for $1 per unit. The variable costs are $0.60 per unit, and production of 200 000 units is planned. Fixed costs are $0.20 per unit at the budgeted production level. What is the break-even level?

A40 000 units

B66 667 units

C100 000 units

D160 000 units

✓ Correct answer

C: 100 000 units

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2009 Paper 1 Variant 2, question 27.

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