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

Costs and cost behaviour — practice question

A business manufactures and sells one product only. Its selling price is $100 and the contribution per unit is $40. At an output level of $500$ units, the business earns a profit of $2000. The direct material price is forecast to increase by $4$ per unit. How many units must be manufactured and sold for the profit to stay the same?

  • A450
  • B455
  • C550
  • D556

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