Gce Model Questions Vol1 2025 Commerce Question 15

Practice objective / multiple choice question 15 from the 2025 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2025 Commerce Objective / Multiple Choice Medium Difficulty
Question 15 GCE_MODEL_QUESTIONS_VOL1 • 2025 • COMMERCE • objective

A wholesaler sells a product at \(£25\) per unit. Variable cost per unit is \(£15\) and fixed costs are \(£12,000\) per month. He is considering reducing the selling price to \(£22\) per unit; market research predicts that for each \(£1\) reduction in price, sales volume will increase by 200 units per month. Determine (a) the current break‑even volume, (b) the new break‑even volume after the price reduction, and (c) the percentage change in break‑even volume.

Answer Options

Correct Answer A. Current break‑even: 1,200 units; New break‑even: ≈1,714 units; Increase: ≈42.9 %
B. Current break‑even: 1,100 units; New break‑even: ≈1,600 units; Increase: ≈45.5 %
C. Current break‑even: 1,250 units; New break‑even: ≈1,800 units; Increase: ≈44.0 %
D. Current break‑even: 1,300 units; New break‑even: ≈2,000 units; Increase: ≈53.8 %
Correct Answer
A
Correct Option:
Current break‑even: 1,200 units; New break‑even: ≈1,714 units; Increase: ≈42.9 %

About This Question

This is Gce Model Questions Vol1 2025 Commerce Question 15. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Medium .

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