CIMA Exam CIMAPRO19-P02-1 Topic 6 Question 83 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 83
Topic #: 6

Company X is considering the launch of a new product. In order to compete in the market the selling price must be $100 per unit. Company X aims to achieve a sales margin of 25 per cent.

Direct materials cost is $75 for each unit. It takes 15 minutes for workers to assemble each unit. Workers are paid $16 per hour. 5 per cent of paid time is idle. Overheads are absorbed at $6.50 per unit.

What is the value of any cost gap between the forecast total cost and the target cost?

A$10.71

B$5.50

C$10.50

D$9.10

Show Suggested Answer

Suggested Answer: A

by Estrella at Mar 19, 2024, 03:08 AM

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Gladys

29 days ago

I feel like I'm trying to solve a Rubik's cube while juggling chainsaws. Accounting, you never cease to amaze me.

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Gracie

1 months ago

This question is like a secret code that only accountants can decipher. I'll just stare at it until the answer magically appears in my head.

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Vanesa

11 days ago

I think the answer is A) $10.71

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Lachelle

20 days ago

A) $10.71

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Quiana

1 months ago

Okay, let's break this down step-by-step. Piece of cake, right? Except for the part where I have to remember how to do math.

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Samira

7 days ago

C) $10.50

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Bette

14 days ago

B) $5.50

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Lynda

20 days ago

A) $10.71

upvoted 0 times

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Hassie

1 months ago

Hmm, let's see... 25% sales margin, $75 materials cost, 15 minutes assembly time, and 5% idle time. I need a calculator the size of a small car to solve this one.

upvoted 0 times