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

Costs and cost behaviour — practice question

A producer has fixed costs of $\$300\,000$. It produces and sells one product at $\$80$ for each unit. The contribution to sales ratio is $60\%$. How many units must it sell to earn a profit of $\$600\,000$?

  • A$6250$
  • B$6750$
  • C$12\,500$
  • D$18\,750$

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