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

Costs and cost behaviour — practice question

The figures below present the budget for a small manufacturing company. Sales in units: $6000$ and $12000$ Direct materials: $\$18000$ and $\$36000$ Direct labour: $\$6000$ and $\$12000$ Production overheads: $\$33000$ and $\$45000$ Administrative overheads: $\$27000$ and $\$27000$ Each unit is sold at $\$16$. What is the break-even point in units?

  • A$2700$
  • B$3000$
  • C$4000$
  • D$4800$

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