A Level Accounting (9706)•9706/13/M/J/22

Explanation
Data inconsistency prevents accurate calculation Steps:
- Verify current profits: Red profit = 180,000 variables - 70,000 (given as 150,000 - 80,000 = 8,000); total = 95,000).
Why C is correct:
- Not enough information due to mismatched profit figures, violating basic accounting identity (revenue - costs = profit).
Why the others are wrong:
- A assumes consistent data and standard contribution margin increase of ~$34,000, ignoring discrepancies.
- B misapplies partial cost adjustments without resolving ambiguity.
- D lacks a defined option, invalid by default.
Final answer: Not enough information.
Topic: Costs and cost behaviour
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