CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 57 Discussion

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

Question #: 57
Topic #: 1

If the fixed costs are increased, the point at which the line plotted on a profit/volume (PV) graph cuts the horizontal axis will:

ADouble

BMove to the left

CStay the same

DMove to the right

Show Suggested Answer

Suggested Answer: C

by Kallie at Sep 03, 2023, 10:50 PM

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Anjelica

10 days ago

Hmm, I think the answer is B. If the fixed costs increase, the break-even point will shift to the left, requiring more units to be sold to cover those higher fixed costs.

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Tasia

19 days ago

But if fixed costs increase, wouldn't that shift the break-even point to the right on the graph?

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Brittani

22 days ago

I disagree, I believe the answer is D) Move to the right.

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Tasia

26 days ago

I think the answer is C) Stay the same.

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