Accounting Multiple Choice Question – 19 July 2021

A company sells two products, X and Y.

Which would increase the company’s profit by £10,000?

Select ONE answer:

1. a 30 % increase in the sales of X
2. a 50 % increase in the sales of both products
3. an increase in the selling price of X by £1 and Y by £6
4. a reduction in the variable costs of both products by £5

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 ==> (500 * £12) + (1,000 * £4)
3. Not correct
4. Not correct

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