CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 40 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 40
Topic #: 1

Refer to the exhibit.

The following conventional breakeven chart has been drawn for a product. Forecast sales volume for next period is V units.

Which ONE of the following distances on the graph indicates the forecast profit for next period?

ADistance a

BDistance b

CDistance c

DDistance d

Show Suggested Answer

Suggested Answer: D

by Carmen at Aug 20, 2022, 10:08 PM

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Desiree

3 days ago

Wait, wait, wait. Is it just me, or does this chart look like it's straight out of a middle school math textbook? I mean, come on, this is a certification exam! They could at least try to make it a little more challenging.

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Dion

11 days ago

Hmm, that makes sense. I see your point now.

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Wei

13 days ago

I disagree, I believe it is Distance c because it represents the forecast profit.

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Catalina

17 days ago

Hmm, this is tricky. I think the answer is B, distance b. That's the difference between the total revenue and the total cost at the forecast sales volume. Easy peasy, right?

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Dion

19 days ago

I think the answer is Distance b.

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