A-LevelAccountingCosting and Break-even AnalysisOct/Nov 2011Paper 1 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
The correct answer is C. This question tests the candidate's understanding of costing and break-even analysis within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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