Accounting Multiple Choice Question – 22 January 2023

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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