Accounting Multiple Choice Question – 14 December 2021

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

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The following information relates to a product:

  • fixed costs – £72,000
  • desired profit – £30,000
  • selling price per unit – £10
  • variable cost per unit – £4

How many units must be produced and sold to cover fixed costs and make the desired profit?

Select ONE answer:

  1. 12,000 units
  2. 17,000 units
  3. 18,000 units
  4. 25,500 units

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 ==> £72K + £30k = £102k / (£10 – £4) ==> 17,000 units
  3. Not correct
  4. Not correct

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