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

Costs and cost behaviour — practice question

A company gave the information below for one product. For each unit ($): selling price $15.00$, variable cost $9.00$, fixed cost $4.20$. Planned output and sales amounted to $1200$ units. Calculate the profit earned if actual output and sales were $1500$ units?

  • A$2700$
  • B$3960$
  • C$6660$
  • D$9000$

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