Q1. Based on this information, the firm's profit for the year margin is:

Sales $250,000

Cost of sales $ 100,000

Expenses $ 40,000

Taxation $ 22,000

A 35.2%

B 44.0%

C 56.0%

D 60.0% (1 mark)

Q3 . Last month a business sold 10,000 units priced at 10 per unit. Variable costs per unit

were 2 and monthly fixed costs were 2,000. What was the total contribution?

A 16,000

B 22,000

C 80,000

D 100,000

Q4 . Using the information below, identify the profit variance

A 40,000 favourable

B 60,000 favourable

C 100,000 favourable

D 160,000 favourable (1 mark)

05. A business sources cheaper supplies reducing the variable cost per unit. What happens

if the business also increases the selling price per unit?

A Contribution per unit increases and the break-even point reduces

B Contribution per unit increases and the break-even point increases

C Contribution per unit reduces and the break-even point increases

D Contribution per unit reduces and the break-even point reduces (1 mark)