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

Costs and cost behaviour — practice question

In April and May, a business recorded the following figures. Units made and sold: April $1000$, May $1200$. Total revenue: April $\$50\,000$, May unknown. Total contribution: April $\$22\,000$, May unknown. Total profit: April $\$8000$, May $\$10\,500$. The selling price per unit and total fixed costs stayed unchanged. What was the change in the variable cost per unit?

  • Adecrease $\$0.75$
  • Bdecrease $\$1.58$
  • Cincrease $\$0.75$
  • Dincrease $\$1.58$

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