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

Costs and cost behaviour — practice question

A company produces $500$ units and sells each one for $\$50$. The direct materials expense is $\$7500$, direct labour expense is $\$2500$ and fixed overheads amount to $\$8400$. How much profit will be made if the company raises the number of units produced and sold to $600$ while keeping the selling price unchanged?

  • A$\$7920$
  • B$\$9600$
  • C$\$10100$
  • D$\$11600$

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