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

Costs and cost behaviour — practice question

In the previous month, a company produced and sold $10000$ units and generated a contribution of $20$ for each unit. After total fixed costs were deducted, its net profit was $120000$. In this month, sales volume has risen by $20\%$, contribution per unit has risen by $5\%$ and total fixed costs have risen by $15\%$. Calculate its profit this month.

  • A$118000
  • B$148000
  • C$160000
  • D$172000

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI