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

Costs and cost behaviour — practice question

For August, the figures for selling 6\,000 units were given below, per unit: selling price $40$, variable costs $22$, fixed costs $12$, profit $6$. In September, the selling price was cut by $10\%$. Which sales level was required in September to earn the same total profit as in August?

  • A$5\,143$ units
  • B$6\,600$ units
  • C$7\,715$ units
  • D$9\,000$ units

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