Accounting Multiple Choice Question – 21 May 2022

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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