CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 45 Discussion

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

Question #: 45
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

The forecast costs per unit for a new product are as follows:

The company uses marginal cost plus pricing and all products are required to achieve a 40% margin.

What would be the selling price per unit?

A$37.80

B$46.20

C$45.00

D$55.00

Show Suggested Answer

Suggested Answer: D

by Cordelia at Dec 12, 2022, 05:06 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA2-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Annita

4 days ago

Okay, so the total cost per unit is $33. If we need a 40% margin, that means the selling price should be 140% of the total cost. Time to crunch the numbers! I'm going with option B) $46.20.

upvoted 0 times

...

Hmm, let's see. If the company uses marginal cost plus pricing and requires a 40% margin, then the selling price should be calculated based on the total cost per unit. This seems to be a straightforward math problem, but I better double-check my work just in case.

upvoted 0 times

...

Alberta

18 days ago

I'm not sure, but I think I would go with option B as well. It seems to make sense.

upvoted 0 times

...

Jennie

21 days ago

I agree with Macy, because that would give us a 40% margin based on the forecast costs.

upvoted 0 times

...

Macy

26 days ago

I think the selling price per unit should be $46.20.

upvoted 0 times

...

CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 45 Discussion

Contribute your Thoughts:

Annita

Leatha

Alberta

Jennie

Macy