Last Year ABC Ltd Sold 5000 Units Generating Sales Revenue

Multiple Choice

Last year ABC Ltd sold 5000 units generating sales revenue of £50000. The total variable costs were £25000 and the fixed costs were £10000. The company has recognized that fixed costs will rise next year by £5000. If the company wanted to make the same amount of profit next year how many units would have to be sold.

A) 1000
B) 2000
C) 1500
D) 950