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

Costs and cost behaviour — practice question

A company’s total fixed costs are $400000. It produces and sells one product at $25 per unit, and its contribution to sales ratio is 80%. How many units must it produce and sell in order to earn a profit of $200000?

  • A10000
  • B20000
  • C24000
  • D30000

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI