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.

Accounting
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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

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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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