CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 44 Discussion

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

Question #: 44
Topic #: 1

The unit data for a product are:

(a) selling price 12

(b) variable cost 6.

If selling prices are reduced by 10% and variable costs are increased by 12.5%, which of the following is the revised profit/volume ratio?

A0.375

B0.5

C0.4875

D0.542

Show Suggested Answer

Suggested Answer: D

by Daniel at Nov 21, 2022, 12:47 AM

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Osvaldo

5 days ago

Wait, is this a trick question? I feel like I'm about to fall into a 'profit/volume' ratio black hole. Time to use my best logical thinking skills.

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Izetta

8 days ago

I bet the exam creator is just trying to trip us up with all these percentages. But no worries, I've got this! Profit/volume ratio, here I come.

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Jeanice

11 days ago

Okay, so the selling price is reduced by 10%, and the variable cost is increased by 12.5%. Time to break out the calculator and crunch some numbers!

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Bette

15 days ago

Hmm, let's see. With the given information, I need to recalculate the profit/volume ratio. This seems like a straightforward math problem, but I better double-check my work.

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Cordelia

16 days ago

I'm not sure, but I think I agree with Samira. The answer might be C) 0.4875.

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Roy

20 days ago

I disagree, I believe the answer is D) 0.542.

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Samira

22 days ago

I think the answer is C) 0.4875.

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