Accounting Multiple Choice Question – 24 June 2023

Lucy Ltd has sales of £192,000, fixed costs of £40,000 and a contribution / sales ratio of one-third.

What are the profits of Lucy Ltd in £s?

Select ONE answer:

1. 24,000
2. 50,667
3. 64,000
4. 88,000

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 – £192k / 3 = £64k – £40k = £24k
2. Not correct
3. Not correct
4. Not correct

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