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ScotlandAccountingQuick questions

Management Accounting

Quick questions on Break-even analysis: contribution, break-even point, margin of safety - SQA National 5 Accounting

3short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Selling price £15\pounds 15, variable cost £9\pounds 9. Find the contribution per unit. [1 mark]
What is q2?
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Fixed costs £12000\pounds 12000, contribution £6\pounds 6 per unit. Find the break-even point in units. [2 marks]
What is q3?
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For Q2, find the units needed for a £3000\pounds 3000 profit. [2 marks]

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