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

Costs and cost behaviour — practice question

A business produces two products. Product X: selling price $10$, variable costs per unit $4$, maximum sales $4000$ units. Product Y: selling price $12$, variable costs per unit $8$, maximum sales $14000$ units. The total fixed costs amount to $44700$. $4000$ units of X are sold. How many units of Y need to be sold for the business to break even?

  • A$3450$
  • B$3725$
  • C$5175$
  • D$11175$

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