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.

Accounting
Photo by Nataliya Vaitkevich on Pexels.com

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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Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

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