Day: October 15, 2021

The following figures relate to the budgeted figures for a product. 

The volume of sales for the product increased by 20%.

What would be the increase in profit? 

Select ONE answer:

1. 20%
2. 52%
3. 76%
4. 88%

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 ==> (£1,100,000 * 1.2) = £1,320,000 – (450,000 *1.2) – 400,000 = £380,000 ==> £380k / £250k = 52%
3. Not correct
4. Not correct

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