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

Costs and cost behaviour — practice question

A company plans to sell $50\,000$ units and make a profit of $\$600\,000$. Its variable cost is $\$60$ per unit, and its total fixed overheads are $\$400\,000$. What selling price per unit must it charge in order to obtain the profit needed?

  • A$\$64$
  • B$\$68$
  • C$\$72$
  • D$\$80$

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