Day: October 21, 2023

Accounting Multiple Choice Question – 21 October 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 Manufacturing Ltd manufactures one product.

Variable costs are £600k. Fixed costs are £300k.

If Alex Manufacturing Ltd bought the product from another supplier, it could use existing machinery to make a total contribution of £400k. Fixed costs would not change.

What is the maximum price it should pay to obtain the product from another supplier?

Select ONE answer:

  1. £600k
  2. £700k
  3. £900k
  4. £1,000k

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 – £600k + £400k

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