Question 1
The table below represents the cost of a firm in a particular year. Use the information in the table to answer the questions that follow:
- If the produced 1,500 units of a product calculate the firm’s:
- Total variable cost;
- Total fixed cost.
- If the price of the firm’s product is $80.00 and it sold all its product, calculate the firm’s:
- Total revenue
- Profit.
- If the firm pays 15% corporate tax, calculate its net profit.
This is one of the data response questions and it was attempted by few candidates.
The question required the candidates to determine the firm’s total variable and fixed costs in the (a) part, calculate the firm’s total
revenue, profit and tax in the (b) and (c) parts respectively. Most candidates who attempted this question were unable to determine the
various items that makes up the firm’s total variable and fixed costs in the (a) part but were able calculate the revenue, profit and
tax in the (b) and (c) parts of the question. Candidates performance was above average in this question.
