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

Costs and cost behaviour — practice question

For the year, the figures below have been given. Sales: $\$400000$ Variable costs: $\$240000$ Total contribution: $\$160000$ Fixed administrative expenses: $\$90000$ Fixed selling expenses: $\$50000$ Profit for the year: $\$20000$ The company intends to raise the selling price by $10\%$. By how much will profit for the year rise?

  • A$10\%$
  • B$55\%$
  • C$80\%$
  • D$200\%$

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