Tag: Contribution

Accounting Multiple Choice Question – 21 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 Manufacturing Ltd has made 1,800 calculators in one month.

Each calculator had a variable cost of £5.40 and a selling price of £11.

The fixed costs for the month were £8,000.

How much contribution did Alex Manufacturing Ltd make in the month?

Select ONE answer:

  1. £10,080
  2. £19,800
  3. £2,080
  4. £1,720

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 1

  1. Correct – Contribution per unit = selling price per unit – variable cost per unit = 11.00 – 5.40 = £5.60 per unit. Total contribution = number of units x contribution per unit = 1,800 x £5.60 = £10,080
  2. Not correct
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 17 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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The graph shows a break-even chart.

What are the fixed costs?

Select ONE answer:

  1. £0
  2. £10k
  3. £20k
  4. £30k

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
  3. Not correct
  4. Not correct

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Accounting Multiple Choice Question – 16 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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The financial data in the table below relates to a small business called Alex Trading:.

  • Sales – £6,000
  • variable costs – £4,500
  • fixed costs – £900
  • net profit – £600

What is the contribution to sales ratio?

Select ONE answer:

  1. 10%
  2. 25%
  3. 33.33%
  4. 75%

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 == > £1,500 (£900 + £600) / £6,000 = 25%
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 24 August 2023

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

Photo by Olya Kobruseva on Pexels.com

Alex plc sells two products, X and Y.

  • sales (units) of X was 1,000 & Y was 2,000
  • selling price per unit of X was £22 & Y was £12
  • contribution per unit of X was £12 & Y was £4

Which would increase the company’s profit by £10,000?

Select ONE answer:

  1. a 30% increase in the sales of X
  2. a 50 % increase in the sales of both products
  3. an increase in the selling price of X by £1 and Y by £6
  4. a reduction in the variable costs of both products by £5

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 – current profit 1,000 units of X * £12 + 2,000 units of Y * £8 = £20,000. To increase profit by £10,000 then extra 50% of X & Y = £10,000
  3. Not correct
  4. Not correct

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This work is licensed under a Creative Commons Attribution 4.0 International License.

Accounting Multiple Choice Question – 20 July 2023

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

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The following information relates to the budgeted and actual sale of a product.

  • BUDGET – sales volume in units 40,000 + contribution per unit £2 + fixed costs (total) £30,000
  • ACTUAL – sales volume in units 36,000 + contribution per unit £2.5 + fixed costs (total) £30,000

What change in the break-even point has been caused by actual sales being different from budget?

Select ONE answer:

  1. 20% better
  2. 20 % worse
  3. 80% better
  4. 80 % worse

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 1

  1. Correct – BEP = FC / CM per unit = = > £30,000 / £2 = £15,000 to £30,000 / £2.5 = £12,000 Therefore 20% better
  2. Not correct
  3. Not correct
  4. Not correct

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.