A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2011 · Q261 Mark

A company makes and sells one product that has a variable cost of $21 and a contribution to sales ratio of 30%. Total fixed costs per month are $112 500. How many units need to be sold each month to break-even?

A3750 units

B5357 units

C12 500 units

D16 071 units

✓ Correct answer

C: 12 500 units

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2011 Paper 1 Variant 2, question 26.

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