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

Costs and cost behaviour — practice question

A company’s fixed costs are $30000$. It achieves sales of $10000$ units of one product at $20$ per unit, and its contribution to sales ratio is $75\%$. By how much will profit increase if total sales rise to $15000$ units?

  • A$45000$
  • B$75000$
  • C$195000$
  • D$225000$

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