A-LevelAccountingCost-Volume-Profit (CVP) AnalysisOct/Nov 2009Paper 1 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?

Q: What is the correct answer to this A-Level Accounting question?

The correct answer is C: 100 000 units.

Q: What topic does this question test?

This question tests Cost-Volume-Profit (CVP) Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

A40 000 units

B66 667 units

C100 000 units

D160 000 units

✓ Correct Answer

The correct answer is C: 100 000 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 Cost-Volume-Profit (CVP) Analysis in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2009 examination, Paper 1 Variant 2.

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