Accounting Multiple Choice Question – 27 June 2023

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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