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

Costs and cost behaviour — practice question

The information below was given for a product. Selling price per unit: $50 Variable cost per unit: $26 Total fixed costs: $10000 Demand: 1800 units If the selling price rises, only demand changes. When the selling price went up by $4, profit decreased by $1200. What was the reduction in demand?

  • A214 units
  • B300 units
  • C571 units
  • D657 units

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