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AMA PCM Exam - Topic 7 Question 71 Discussion

Actual exam question for AMA's PCM exam
Question #: 71
Topic #: 7
[All PCM Questions]

What is the variable cost of a product if the fixed costs associated with it total $6,000, the break even point is 300 units, and selling price is $45?

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Suggested Answer: D

by Kristofer at Jul 03, 2023, 07:28 PM

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Jesus
6 months ago
Just did the math, and yeah, $25 is right!
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Jacquelyne
6 months ago
I thought it would be higher, like $34.
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Serina
7 months ago
Wait, how did you get that?
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Marquetta
7 months ago
Totally agree, $25 makes sense!
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Ivory
7 months ago
The variable cost is $25.
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Catalina
7 months ago
If I recall correctly, the formula should help us find the variable cost per unit, but I can't remember the exact steps. I hope I can figure it out during the exam!
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Ashton
7 months ago
I’m a bit confused about the selling price and how it factors into the variable cost. I feel like I might be overthinking it.
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Deangelo
8 months ago
I remember a similar question where we had to find variable costs using fixed costs and selling price. I think we might need to subtract fixed costs from total revenue at break-even.
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King
8 months ago
I think the variable cost is calculated by using the break-even point and fixed costs, but I'm not entirely sure how to set it up.
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Nichelle
8 months ago
I got this! The answer has to be A. The question is specifically asking how to determine what consumables the end user has consumed, and that option mentions going to the "My Consumables" section.
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Maurine
8 months ago
Hmm, the routing black hole statement is interesting. I'll need to think through the implications of the configured routes and default route to determine if that's correct.
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Matt
8 months ago
I'm a bit unsure about the USB device name. Is it usb1, usb, or usb0? I'll have to think this through carefully.
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Dong
1 year ago
This is easy peasy, just plug and chug. Option B is the way to go, no doubt about it.
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Scarlet
12 months ago
Great, let's go with option B then.
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Vesta
1 year ago
Yeah, I agree. It's definitely $25.
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Robt
1 year ago
I think it's option B, $25.
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Laticia
1 year ago
I bet the answer is hidden in a complex formula somewhere. Time to bust out the calculator!
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Olive
1 year ago
D? Really? That's way off. I'm going with A, that makes the most sense.
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Kyoko
11 months ago
I'm going with A too, $17 seems right.
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Cary
11 months ago
I'm pretty sure it's A, $17.
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Stephaine
11 months ago
No, I believe it's C, $29.
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Chana
11 months ago
I think it's B, $25.
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Mari
11 months ago
I'm not sure, but I think it might be E, $41.
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Nathalie
12 months ago
I'm going with A, $17.
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Theodora
12 months ago
No, I'm pretty sure it's C, $29.
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Jesusa
1 year ago
I think it's B, $25.
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William
1 year ago
But if you calculate the variable cost using the formula (Selling Price - Fixed Costs) / Break Even Point, you will get $17.
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Georgene
1 year ago
Wait, is this a trick question? I'm going to double-check my work.
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Tammy
1 year ago
I got $17 as well. Let's compare our calculations.
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Marion
1 year ago
I think the answer is $17.
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Marisha
1 year ago
I disagree, I believe the answer is D) $34.
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William
1 year ago
I think the answer is A) $17.
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Brittney
1 year ago
Aha! I think the answer is C. The math checks out.
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Jeannetta
1 year ago
That makes sense, thanks for the clarification.
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Adell
1 year ago
So, the variable cost would be $29.
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Venita
1 year ago
I agree, the math does check out.
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Linette
1 year ago
I think the answer is C.
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Levi
1 year ago
Option B seems too high, I think the variable cost is lower than that.
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Kami
1 year ago
I'm not sure, but I think it's $25 too.
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Barrett
1 year ago
I believe it's $29 because the break even point is 300 units.
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Salome
1 year ago
I think the answer is $25.
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