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

Costs and cost behaviour — practice question

A firm manufactures and sells one product type with a selling price of $20 per unit. Variable costs amount to $8 per unit. Total fixed costs are $7000. The firm aims to earn a target profit of $20 000. How many units must be produced and sold in order to reach the target profit?

  • A1000
  • B1350
  • C1667
  • D2250

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