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

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Suggested Answer: A, D, E

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

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Lavelle

2 months ago

Alright, let's do this! The total fixed costs are going to be $75,000, no doubt about it. I mean, how else could you possibly calculate it with the information given? It's like they're practically handing us the answer.

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Micheal

1 months ago

Great, so we're all on the same page then. $75,000 it is.

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Nan

1 months ago

Yes, I agree. It's the only logical answer based on the information provided.

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Vallie

1 months ago

I think the total fixed costs are $75,000.

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Edwin

2 months ago

Haha, this reminds me of that time in my accounting class when the professor asked us to calculate the breakeven point for a company that sold ice cream and hot dogs. I ended up mixing up the units and got some really bizarre results. Let's make sure we don't make that mistake here!

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Lashonda

2 months 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.

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Rikki

10 days ago

In this case, the total fixed costs would be $75,000 (in 000's).

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Fidelia

14 days ago

Once we have the weighted average contribution per unit, we can use it to find the total fixed costs by dividing the sum of the breakeven points for both products by the weighted average contribution per unit.

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Malcom

20 days ago

To calculate the weighted average contribution per unit, we multiply the contribution per unit of each product by its sales mix percentage and then sum them up.

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Maryln

1 months ago

You're right, we need to calculate the weighted average contribution per unit by taking into account the sales mix of each product.

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Cassi

2 months 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!

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