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A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2011 · 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

A: 10% increase in selling price

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About this question

Topic
Analysis and communication of accounting information, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source
A-Level Accounting, Oct/Nov 2011 Paper 1 Variant 2, question 27.

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