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

Costs and cost behaviour — practice question

In the previous month, a business sold 10 000 units and achieved a total contribution of $60 000. Fixed costs were $10 000. Over this month, the sales volume decreased by 20% and the contribution per unit decreased by 10%. Fixed costs remained the same. By what amount will its profit fall this month compared with last month?

  • A$6000
  • B$16 800
  • C$26 800
  • D$43 200

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