Business Studies Multiple Choice Question – 28 February 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Lucy’s Jewels is a local jewellery business making necklaces from round pebbles found on Dorset beaches. Once the pebbles have been collected, they are prepared and made into items of jewellery, by adding colour and glass beads.

Lucy’s Jewels makes 600 items a month. The Average Selling Price per item is £30. Variable costs per necklace are £15 & their Fixed costs per month are £1,000.

What are the monthly total costs for Lucy’s Jewels?

Select ONE answer:

  1. £8,500
  2. £10,000
  3. £13,000
  4. £14,000

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 2:

  1. is not correct because the wrong figures have been used.
  2. TC = TVC + TFC or (600 * £15) + £1,000 = £10,000
  3. is not correct because the wrong figures have been used.
  4. is not correct because the wrong figures have been used.

 

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