CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 63 Discussion

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

Question #: 63
Topic #: 1

A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.

How many units would need to be sold in a period to earn a profit of $10,000?

A9,000

B8,000

C36,000

D32,000

Show Suggested Answer

Suggested Answer: B

by Viva at Jan 23, 2024, 04:46 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

Vivan

19 days ago

Time to unleash my inner accountant! This is right up my alley. I bet I can solve this in my sleep.

upvoted 0 times

Tresa

2 days ago

Let's plug in the numbers and solve for Units. Profit = ($25 * Units) - ($10 * Units) - $80,000

upvoted 0 times

...

Kattie

5 days ago

We need to use the formula: Profit = (Selling Price * Units) - (Variable Cost * Units) - Fixed Costs

upvoted 0 times

...

Ivan

21 days ago

Haha, looks like they're trying to trick us with all these numbers. Better stay focused and not get too distracted by the fancy jargon.

upvoted 0 times

Ceola

12 days ago

We need to figure out how many units to sell to make a profit of $10,000.

upvoted 0 times

...

Valda

28 days ago

Ooh, this looks tricky. I better double-check my work to make sure I don't end up with the wrong answer. Can't afford to lose points on this one!

upvoted 0 times

This seems like a straightforward break-even analysis problem. I'll have to calculate the contribution margin per unit and the total fixed costs to find the number of units needed to reach the target profit.

upvoted 0 times

...

Moon

1 months ago

So, the contribution per unit is $10. We can use this to find the number of units needed to earn a profit of $10,000.

upvoted 0 times

...

Tamie

1 months ago

I agree. The contribution margin is 40% of the selling price.

upvoted 0 times

...

Moon

1 months ago

I think we need to calculate the contribution margin first.

upvoted 0 times

...

Jina

1 months ago

So, to earn a profit of $10,000, we need to cover the fixed costs and then make an additional $10,000.

upvoted 0 times

...

Fairy

1 months ago

I agree. The contribution margin is 40%.

upvoted 0 times

...

Jina

1 months ago

I think we need to calculate the contribution margin first.

upvoted 0 times

...

CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 63 Discussion

Contribute your Thoughts:

Vivan

Tresa

Kattie

Ivan

Ceola

Valda

Phil

Terrilyn

Donte

Catherin

Dottie

Moon

Tamie

Moon

Jina

Fairy

Jina