Day: December 12, 2023

Accounting Multiple Choice Question – 12 December 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 Trading Ltd has fixed costs of £100,000.

Alex Trading Ltd sells a single product for £25 per unit, and its contribution to sales ratio is 40 %.

What is the break-even point in units for Alex Trading Ltd?

Select ONE answer:

  1. 6,667
  2. 10,000
  3. 40,000
  4. 250,000

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 2

  1. Not correct
  2. Correct – 40% of £25 = £10 == > £100,000 FC / £10 = 10,000 units
  3. Not correct
  4. Not correct

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