Accounting Multiple Choice Question – 25 June 2023

Alex plc sells its product for £10 per unit and each unit has variable costs of £6 per unit.

Alex plc’s fixed costs for the year are:

• factory rent – £30k
• other fixed costs – £70k

What is the break-even point?

Select ONE answer:

1. 10 000 units
2. 16 667 units
3. 17 500 units
4. 25 000 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 – (£30k + £70k) / (£10 – £6)

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