A-LevelAccountingTraditional costing methods9706/12 · Oct/Nov 2016 · Q261 Mark

A company makes and sells a single product for $12 per batch. The variable cost is $4 per batch. Fixed costs have been absorbed based on a normal activity level of 1000 batches at $3 per batch. What is the profit under marginal costing if the company makes and sells 1500 batches?

A$6000

B$7500

C$9000

D$12000

✓ Correct answer

C: $9000

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Topic: Traditional costing methods, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2016 Paper 1 Variant 2, question 26.

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