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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Lucille

1 months ago

I bet the person who wrote this question was trying to trick us. They're probably sitting back and laughing maniacally right now.

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Carmen

16 days ago

C) Stay the same

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Carissa

17 days ago

B) Move to the left

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Hildegarde

18 days ago

A) Double

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Garry

1 months ago

A? Really? Doubling the fixed costs? That's just crazy talk. I'm sticking with B.

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Pok

2 months ago

C seems right to me. The fixed costs don't affect the break-even point, so it should stay the same.

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Jenifer

17 days ago

Yes, fixed costs are not considered when determining the break-even point on a profit/volume graph.

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Arlean

1 months ago

That makes sense, fixed costs are not factored into the break-even analysis.

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Hillary

1 months ago

I think you're right, C is the correct answer. Fixed costs don't impact the break-even point.

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Winfred

2 months ago

I'm going with D. The higher fixed costs will cause the line to shift downward, so the point where it intersects the horizontal axis will move to the right.

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Octavio

15 days ago

So, the point where it intersects the horizontal axis will move to the right.

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Grover

17 days ago

I agree, higher fixed costs will shift the line downward.

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Wynell

19 days ago

I think it will move to the right.

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Anjelica

2 months 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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