Accounting Multiple Choice Question – 22 March 2022

A business provided the following information about a product per unit.

• selling price – £15.00
• variable cost – £9.00
• fixed cost – £4.20

Budgeted production and sales were 1200 units.

What was the profit made for actual production and sales of 1500 units?

Select ONE answer:

1. £2,700
2. £3,960
3. £6,660
4. £9,000

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 – £15 – £9 – £4.2 = £1.8 * 1,200 units = £2,160 + (£15 – £9 * 300 units) = £3,960
3. Not correct
4. Not correct

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