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

Costs and cost behaviour — practice question

A business is given the following data for one type of product: - present output and sales: 8000 units - selling price per unit: $20 - variable cost per unit: $12 - fixed costs in total: $25 000 What will be the effect on the break-even point and the margin of safety if fixed costs rise to $32 000?

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