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

Costs and cost behaviour — practice question

A business produces and markets only one kind of product. Each unit is sold at $\$50$, while variable costs come to $\$30$ per unit. Fixed costs in total amount to $\$500\,000$. How many units must the company sell in order to earn a profit of $\$300\,000$?

  • A6400
  • B15000
  • C25000
  • D40000

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