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

Costs and cost behaviour — practice question

For a business, the information below is provided. - budgeted fixed costs each month: $2000 - target profit each month: $3000 - budgeted variable cost per unit: $15 - budgeted selling price per unit: $40 Fixed costs are predicted to rise by $500 per month, and variable costs are predicted to rise by $5 per unit. Which revenue value will be needed to reach the target profit?

  • A$8000
  • B$8800
  • C$10000
  • D$11000

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