A-LevelAccountingDecision Making (Break-even Analysis)Oct/Nov 2012Paper 1 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
The correct answer is D. This question tests the candidate's understanding of decision making (break-even analysis) within the Accountingsyllabus. The examiner's mark scheme requires...
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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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