Accounting Multiple Choice Question – 18 March 2023

A LP vinyl record has a selling price of £10.

• cost per LP vinyl record:
• direct materials – £1.20
• direct labour – £0.80
• factory overhead (fixed) – £1.40
• royalty payment – £1.00
• administration overhead (fixed) – £0.60

What is the contribution per LP vinyl record?

Select ONE answer:

1. £5.00
2. £6.00
3. £7.00
4. £8.00

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 3

1. Not correct
2. Not correct
3. Correct = £1.4 + £1 + £0.60 == > £3 therefore £10 – £3 = £7 contribution
4. Not correct

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