Business Studies Multiple Choice Question – 7 December 2020

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

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The data below refers to a particular good:

  • output = 200 units
  • selling price = £7.25
  • fixed costs = £500
  • contribution per unit = £3

The variable cost per unit is?

Select ONE answer:

  1. £2.50
  2. £4.25
  3. £4.50
  4. £4.75

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. Not correct
  2. Correct — = £7.25 – £3
  3. Not correct
  4. Not correct

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