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

Costs and cost behaviour — practice question

A firm produces one kind of product and charges $\$12$ for each batch sold. Its variable cost comes to $\$4$ per batch. Fixed costs are absorbed using a normal output level of $1000$ batches, at $\$3$ per batch. What is the profit under marginal costing if the firm produces and sells $1500$ batches?

  • A$\$6000$
  • B$\$7500$
  • C$\$9000$
  • D$\$12000$

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