Accounting Multiple Choice Question – 16 March 2023

A company makes two products X & Y.

• selling price – X is £10 & Y is £12
• variable costs per unit – X is £4 and Y is £8
• maximum sales (units) – X is 4,000 & Y is 14,000

Fixed costs are £48,000.

4,000 units of X are sold.

How many units of Y must be sold to break even?

Select ONE answer:

1. 2,000
2. 3,000
3. 6,000
4. 12,000

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct = X contribution is £10 – £4 = £6 * 4,000 = £24,000 — > therefore Y sales must be £48,000 – £24,000 = £24,000 / (£12 – £8) = 6,000 units
4. Not correct

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