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

Costs and cost behaviour — practice question

A business records sales revenue of $400000 and total fixed cost of $140000. Its contribution to sales ratio stands at 40%. What will the sales revenue be if profit for the year rises by $40000?

  • A$360000
  • B$450000
  • C$480000
  • D$500000

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