Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

The information below refers to a business. Planned fixed costs each month: $2000$ Desired profit each month: $3000$ Planned variable cost per unit: $15$ Selling price for each unit: $40$ Fixed costs are expected to rise by $500$ per month, while variable costs rise by $5$ per unit. What value of revenue will be needed to achieve the target profit?

  • A$8000$
  • B$8800$
  • C$10000$
  • D$11000$

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