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

Costs and cost behaviour — practice question

A manufacturer makes one product only. The information below is given. selling price per unit $14$ variable costs per unit $8$ fixed costs per annum $96\,000$ Plans are in place to lower the selling price by $3$ per unit and to cut variable costs by $1$ per unit. Fixed costs will not change. What will the new break-even point be?

  • A$9600$ units
  • B$12\,000$ units
  • C$24\,000$ units
  • D$48\,000$ units

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