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

Costs and cost behaviour — practice question

The information below relates to a manufacturing business: revenue from sales is $\$800\,000$; variable costs are $\$480\,000$; fixed costs are $\$280\,000$. What sales revenue is needed for the business to earn a profit of $\$200\,000$?

  • A$\$520\,000$
  • B$\$960\,000$
  • C$\$1\,000\,000$
  • D$\$1\,200\,000$

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