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

Costs and cost behaviour — practice question

A company’s break-even sales level is 1000 units, with variable costs of $30 000 and fixed costs of $20 000. What profit will be earned if sales are 70 units above the break-even level?

  • A$700
  • B$1400
  • C$2100
  • D$3500

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