Accounting Multiple Choice Question – 20 February 2022

A specialist wedding cake baker’s fixed costs are £7,000 per month.

It sells cakes at a priceof £57 per cake & the variable cost per cake is £22.

What is the break-even level of output and sales each month?

Select ONE answer:

1. 150 cakes
2. 200 cakes
3. 250 cakes
4. 500 cakes

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 ==> £7,000 / (£57 – £22)
3. Not correct
4. Not correct

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