A-LevelAccountingCosting and Decision MakingOct/Nov 2011Paper 1 Q271 Mark
A product has a contribution per unit of $20. Which action would increase the total contribution by the greatest amount?
A10% increase in selling price
B10% increase in the volume of sales
C10% reduction in variable costs
D20% reduction in fixed costs
✓ Correct Answer
The correct answer is A. This question tests the candidate's understanding of costing and decision making 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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