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

Costs and cost behaviour — practice question

A business manufactures and markets just one kind of product. The budgeted figures for $6000$ units are given below: Variable manufacturing costs: $\$90\,000$ Variable selling expenses: $\$6\,000$ Fixed manufacturing overheads: $\$54\,000$ Fixed administrative overheads: $\$21\,000$ The selling price per unit is $\$40$. How many units does the company need to produce and sell in order to earn a target profit of $\$45\,000$?

  • A3960
  • B4125
  • C4800
  • D5000

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