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

Costs and cost behaviour — practice question

The information below is given for a business. budgeted monthly fixed costs $2000$ target monthly profit $3000$ budgeted variable cost per unit $15$ unit selling price $40$ Fixed costs are forecast to rise by $\$500$ each month, and variable costs are forecast to rise by $\$5$ for each unit. Which revenue figure will be needed to reach the target profit?

  • A$8000$
  • B$8800$
  • C$10\,000$
  • D$11\,000$

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