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AMA Exam PCM 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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Dong
1 months ago
This is easy peasy, just plug and chug. Option B is the way to go, no doubt about it.
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Vesta
20 days ago
Yeah, I agree. It's definitely $25.
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Robt
26 days ago
I think it's option B, $25.
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Laticia
1 months ago
I bet the answer is hidden in a complex formula somewhere. Time to bust out the calculator!
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Olive
1 months ago
D? Really? That's way off. I'm going with A, that makes the most sense.
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Theodora
2 days ago
No, I'm pretty sure it's C, $29.
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Jesusa
9 days ago
I think it's B, $25.
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William
1 months 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
2 months ago
Wait, is this a trick question? I'm going to double-check my work.
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Tammy
22 days ago
I got $17 as well. Let's compare our calculations.
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Marion
24 days ago
I think the answer is $17.
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Marisha
2 months ago
I disagree, I believe the answer is D) $34.
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William
2 months ago
I think the answer is A) $17.
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Brittney
2 months ago
Aha! I think the answer is C. The math checks out.
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Jeannetta
12 days ago
That makes sense, thanks for the clarification.
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Adell
13 days ago
So, the variable cost would be $29.
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Venita
28 days ago
I agree, the math does check out.
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Linette
1 months ago
I think the answer is C.
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Levi
2 months ago
Option B seems too high, I think the variable cost is lower than that.
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Kami
2 months ago
I'm not sure, but I think it's $25 too.
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Barrett
2 months ago
I believe it's $29 because the break even point is 300 units.
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Salome
2 months ago
I think the answer is $25.
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