A Level Accounting (9706)•9706/13/O/N/24

Explanation
Insufficient cost structure for positive profit Steps:
- Calculate original revenue: 500 units × 2500.
- Original total costs: direct materials 5000 + fixed overheads 9900; profit = 9900 = -$7400.
- For 600 units, revenue = 600 × 3000.
- Assuming direct materials and labor variable: materials = 6000, fixed = 11000; profit = 11000 = -$8000.
- Even assuming labor fixed: total costs = 5000 + 11000; profit still -$8000. Not enough information: Given numbers yield negative profit, but options positive; likely transcription error in selling price or costs.
Final answer: Not enough information.
Topic: Costs and cost behaviour
Practice more A Level Accounting (9706) questions on mMCQ.me