AMA Exam PCM Topic 7 Question 71 Discussion

Actual exam question for AMA's PCM exam

Question #: 71
Topic #: 7

[All PCM Questions]

What is the variable cost of a product if the fixed costs associated with it total $6,000, the break even point is 300 units, and selling price is $45?

A$17

B$25

C$29

D$34

E$41

Show Suggested Answer

Suggested Answer: D

by Kristofer at Jul 03, 2023, 07:28 PM

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Olive

3 days ago

D? Really? That's way off. I'm going with A, that makes the most sense.

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William

8 days ago

But if you calculate the variable cost using the formula (Selling Price - Fixed Costs) / Break Even Point, you will get $17.

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Georgene

10 days ago

Wait, is this a trick question? I'm going to double-check my work.

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Marisha

12 days ago

I disagree, I believe the answer is D) $34.

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William

13 days ago

I think the answer is A) $17.

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Brittney

15 days ago

Aha! I think the answer is C. The math checks out.

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Linette

3 days ago

I think the answer is C.

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Levi

17 days ago

Option B seems too high, I think the variable cost is lower than that.

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Kami

18 days ago

I'm not sure, but I think it's $25 too.

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Barrett

19 days ago

I believe it's $29 because the break even point is 300 units.

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Salome

21 days ago

I think the answer is $25.

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