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

Costs and cost behaviour — practice question

A company that sells $10000$ units each year has these costs: Direct material: $50000$ Assembly labour: $100000$ Factory overheads: $70000$ The usual selling price per unit is $50$. How many extra units must be sold to break even if the selling price is cut to $35$?

  • A1500 units
  • B2000 units
  • C3500 units
  • D5000 units

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