Accounting Multiple Choice Question – 22 January 2023

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

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Existing fixed overheads are £100,000, unit selling price is £10 and unit variable costs are £5.

Fixed overheads are expected to increase by £20 000.

What is the new break-even sales volume?

Select ONE answer:

  1. 10 000 units
  2. 12 000 units
  3. 20 000 units
  4. 24 000 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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > £100k + £20k / (£10 – £5) = 24,000 units

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