New Year Sale 2026! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25

- Free Preparation Discussions

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?

A$17

B$25

C$29

D$34

E$41

Show Suggested Answer

Suggested Answer: D

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

Limited Time Offer

25%

Off

Get Premium PCM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Jesus

3 months ago

Just did the math, and yeah, $25 is right!

upvoted 0 times

...

Jacquelyne

3 months ago

I thought it would be higher, like $34.

upvoted 0 times

...

Serina

4 months ago

Wait, how did you get that?

upvoted 0 times

...

Marquetta

4 months ago

Totally agree, $25 makes sense!

upvoted 0 times

...

Ivory

4 months ago

The variable cost is $25.

upvoted 0 times

...

Catalina

4 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!

upvoted 0 times

...

Ashton

4 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.

upvoted 0 times

...

Deangelo

5 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.

upvoted 0 times

...

King

5 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.

upvoted 0 times

...

Nichelle

5 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.

upvoted 0 times

...

Maurine

5 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.

upvoted 0 times

...

Matt

5 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.

upvoted 0 times

...

Dong

10 months ago

This is easy peasy, just plug and chug. Option B is the way to go, no doubt about it.

upvoted 0 times

Scarlet

9 months ago

Great, let's go with option B then.

upvoted 0 times

...

Vesta

9 months ago

Yeah, I agree. It's definitely $25.

upvoted 0 times

...

Robt

10 months ago

I think it's option B, $25.

upvoted 0 times

...

...

Laticia

10 months ago

I bet the answer is hidden in a complex formula somewhere. Time to bust out the calculator!

upvoted 0 times

...

Olive

10 months ago

D? Really? That's way off. I'm going with A, that makes the most sense.

upvoted 0 times

Kyoko

8 months ago

I'm going with A too, $17 seems right.

upvoted 0 times

...

Cary

8 months ago

I'm pretty sure it's A, $17.

upvoted 0 times

...

Stephaine

8 months ago

No, I believe it's C, $29.

upvoted 0 times

...

Chana

8 months ago

I think it's B, $25.

upvoted 0 times

...

Mari

8 months ago

I'm not sure, but I think it might be E, $41.

upvoted 0 times

...

Nathalie

9 months ago

I'm going with A, $17.

upvoted 0 times

...

Theodora

9 months ago

No, I'm pretty sure it's C, $29.

upvoted 0 times

...

Jesusa

9 months ago

I think it's B, $25.

upvoted 0 times

...

...

William

10 months ago

But if you calculate the variable cost using the formula (Selling Price - Fixed Costs) / Break Even Point, you will get $17.

upvoted 0 times

...

Georgene

10 months ago

Wait, is this a trick question? I'm going to double-check my work.

upvoted 0 times

Tammy

10 months ago

I got $17 as well. Let's compare our calculations.

upvoted 0 times

...

Marion

10 months ago

I think the answer is $17.

upvoted 0 times

...

...

Marisha

10 months ago

I disagree, I believe the answer is D) $34.

upvoted 0 times

...

William

10 months ago

I think the answer is A) $17.

upvoted 0 times

...

Brittney

11 months ago

Aha! I think the answer is C. The math checks out.

upvoted 0 times

Jeannetta

9 months ago

That makes sense, thanks for the clarification.

upvoted 0 times

...

Adell

9 months ago

So, the variable cost would be $29.

upvoted 0 times

...

Venita

10 months ago

I agree, the math does check out.

upvoted 0 times

...

Linette

10 months ago

I think the answer is C.

upvoted 0 times

...

...

Levi

11 months ago

Option B seems too high, I think the variable cost is lower than that.

upvoted 0 times

...

Kami

11 months ago

I'm not sure, but I think it's $25 too.

upvoted 0 times

...

Barrett

11 months ago

I believe it's $29 because the break even point is 300 units.

upvoted 0 times

...

Salome

11 months ago

I think the answer is $25.

upvoted 0 times

...