Accounting Multiple Choice Question – 19 November 2020

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

apple devices books business coffee
Photo by Serpstat on Pexels.com

A company makes 1,000 units and sells these units at £50 each.

The direct materials cost £15,000, direct labour costs £5,000 and fixed overheads are £16,800.

How much profit will be made if the company increases the number of units made and sold to 1,200 without changing the selling price?

Select ONE answer:

  1. £15,840
  2. £19,200
  3. £20,200
  4. £23,200

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

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

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

  1. Not correct
  2. Correct – 1,200 * £50 = £60,000 – (£20*1,200) – £16,800
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.