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

Costs and cost behaviour — practice question

A business produces one product only. The information below is given. Selling price per unit: this year $25, predicted for next year $25 Variable cost per unit: this year $15, predicted for next year $17 Total fixed costs: this year $80000, predicted for next year $84000 Profit for the year: this year $20000 How many units will need to be sold to make the same profit next year?

  • A10000
  • B10500
  • C12500
  • D13000

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