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

Costs and cost behaviour — practice question

A company manufactures and sells one product. The budgeted figures below relate to one month. Selling price per unit $750$ Variable costs per unit $550$ Total monthly sales 600 units Total fixed costs $80000$ The directors can cut the variable costs to $500$ per unit. By how many units may budgeted sales fall in order to make the same monthly profit?

  • A120
  • B320
  • C400
  • D480

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