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

Costs and cost behaviour — practice question

In the previous year, a company sold 2000 units and earned a contribution of $50 for each unit. Once total fixed costs had been subtracted, profit came to $60 000. In the current year: sales volume rose by 10% contribution per unit fell by 5% total fixed costs rose by 25%. What profit did the company achieve this year?

  • A$45 000
  • B$54 500
  • C$60 000
  • D$64 500

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