Accounting Multiple Choice Question – 23 January 2023

Alex plc manufactures 175 units of a product a month.

The following total information is available for the month:

sales income – £580k
variable costs – £230k
fixed overheads – £90k

What is the break-even point in units?

Select ONE answer:

1. 45 units
2. 49 units
3. 61 units
4. 88 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 1

1. Correct – 90,000 / ((580,000 – 230,000)/175)
2. Not correct
3. Not correct
4. Not correct

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