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

Costs and cost behaviour — practice question

A business produces and sells just one product. The sales budget for $5000$ units is shown below: Per-unit amounts: - selling price: $\$75.00$ - variable production cost: $\$25.00$ - fixed production cost: $\$18.90$ - variable selling expenses: $\$5.00$ The company intends to lower the selling price to $\$60$ per unit. How many additional units must be sold to reach break even?

  • A810
  • B1050
  • C2100
  • D3150

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