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

Costs and cost behaviour — practice question

The data below were given for a product: - unit selling price: $50$ - variable cost per unit: $26$ - total fixed costs: $10\,000$ - demand: $1800$ units If the selling price rises, then only demand is affected. After the selling price went up by $4$, profit dropped by $1200$. What was the fall in demand?

  • A214 units
  • B300 units
  • C571 units
  • D657 units

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