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

Costs and cost behaviour — practice question

A business produces two products. The figures per unit are as follows: product X selling price $20$, direct labour $10$, direct materials $4$; product Y selling price $30$, direct labour $20$, direct materials $2$. Total fixed costs amount to $\$54\,000$. Only $3000$ units of Y can be produced and sold. What number of units of product X must be produced and sold to break even?

  • A$4000$
  • B$4500$
  • C$5000$
  • D$9000$

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