Day: June 27, 2023

Accounting Multiple Choice Question – 27 June 2023

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Alex plc provides the following information:

  • total fixed costs – £10,000
  • unit selling price – £1
  • variable unit production costs – £0.75

What is the total sales revenue in £ needed to break even?

Select ONE answer:

  1. 2,500
  2. 7,500
  3. 10,000
  4. 40,000

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct – £10k / £0.25 = 40,000 units

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