CIMA Exam CIMAPRO19-P01-1 Topic 8 Question 87 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 87
Topic #: 8

A company produces and sells two products, product A and product B.

What are the total fixed costs when the weighted average contribution per unit is $5 and the breakeven points for product A and product B are 10,000 units and 5,000 units respectively?

Give your answer as a whole number (in 000's).

A$75000

Show Suggested Answer

Suggested Answer: A, D, E

References:

by Glory at May 09, 2024, 12:36 PM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P01-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Lashonda

6 days ago

Wait, I'm a little confused. How do we calculate the weighted average contribution per unit? Shouldn't we have more information about the individual contribution margins of each product? I feel like I'm missing a step here.

upvoted 0 times

...

Cassi

9 days ago

Okay, let's think this through. The weighted average contribution per unit is $5, and the breakeven points for product A and B are 10,000 and 5,000 units, respectively. We need to find the total fixed costs, which is the sum of the breakeven points multiplied by the contribution per unit. Sounds simple enough!

upvoted 0 times

...