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

Costs and cost behaviour — practice question

A company markets one product at $24 for each unit sold. Its variable cost comes to $8 per unit. Fixed costs have been absorbed using a normal activity level of $1000$ units, at $6 per unit. Calculate the profit under marginal costing when the company produces and sells $1250$ units?

  • A$10000
  • B$12500
  • C$14000
  • D$20000

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