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The following information relates to a business for a period.
Selling price per unit: 100; Variable costs per unit: 60; Total fixed costs: 90,000; Net profit: 15,000. How many units were sold in the period?

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Solution Summary

Accounting, business analysis and finance is examined for variable costs per unit. A sales ledger control accounts are examined.

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I The following information relates to a business for a period.
selling price per unit
100 ($100 - $60)X - $90,000 = $15,000
variable costs per unit
60 Where X equals the number sold.
total fixed costs
90 000 You can plug in the 4 answers to find which one is right.
net profit
15 000
How many units were sold in the period?
A 1500 B 1750 C 2250 D 2625
2 A customer paid a deposit in advance for goods to be supplied at a later date. How should this be recorded in the seller's books?
Debit Credit
A Cash Customer
B Cash Sales
C Customer Prepayment
D Customer Sales

I would answer D because you would debit (increase) the customers account and credit (reduce) sales.
Once the product is shipped, you would do the opposite and thereby increase sales.

3 A trial balance at 30 April 2003, before making end of year adjustments, showed:
debit Credit

Trade debtors $17,800
Provision for doubtful debts $580
Provision of 2% of trade debtors $360
- ($800) $940 Total Answer is C

At 30 April 2003 it was decided to write off a bad debt of $800 and to make a provision for
doubtful debts of ...

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