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

Costs and cost behaviour — practice question

J Limited produces custom pieces of furniture in customers’ own homes. When it prepares job quotations, the business applies a mark-up of 40%. It received an enquiry from a potential customer living 10 kilometres away. Material costs would be $400 and labour costs $240. The business charges $2 per kilometre for each part of the journey. What price will the company quote for the job?

  • A$916
  • B$924
  • C$936
  • D$952

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