Accounting Multiple Choice Question – 21 May 2022

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

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A company makes two products – EXE & WHY

  • selling price – EXE £10 WHY £12
  • variable costs per unit – EXE £4 WHY £8
  • maximum sales (units) – EXE 4,000 WHY 14,000

Total fixed costs are £44,700.

4,000 units of X are sold.

How many units of Y must be sold to break even?

Select ONE answer:

  1. 3,450
  2. 3,725
  3. 5,175
  4. 11,175

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 3

  1. Not correct
  2. Not correct
  3. Correct = £10 – £4 = £6 CM * 4,000 units = £24,000 ==> £44,700 – £24,000 = £20,700 / £4CM for Why ==> 5,175 units
  4. Not correct

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