A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2012 · Q281 Mark

The budget for a product is shown. unit sales 620 000 $ selling price per unit 31 variable cost per unit 16 contribution per unit 15 fixed costs $7 500 000 If the fixed costs rise to $7 800 000, the selling price is reduced to $29 per unit, and the variable cost remains unchanged at $16 per unit, the sales are likely to reach 660 000 units. By what percentage will the break-even point increase?

A4.0%

B11.2%

C16.7%

D20.0%

✓ Correct answer

D: 20.0%

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2012 Paper 1 Variant 2, question 28.

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