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?

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

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Dong

3 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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Scarlet

1 months ago

Great, let's go with option B then.

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Vesta

2 months ago

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

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Robt

2 months ago

I think it's option B, $25.

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Laticia

3 months ago

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

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Olive

3 months ago

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

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Kyoko

25 days ago

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

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Cary

26 days ago

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

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Stephaine

27 days ago

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

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Chana

28 days ago

I think it's B, $25.

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Mari

29 days ago

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

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Nathalie

1 months ago

I'm going with A, $17.

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Theodora

2 months ago

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

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Jesusa

2 months ago

I think it's B, $25.

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William

3 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

3 months ago

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

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Tammy

2 months ago

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

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Marion

2 months ago

I think the answer is $17.

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Marisha

3 months ago

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

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William

3 months ago

I think the answer is A) $17.

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Brittney

3 months ago

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

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Jeannetta

2 months ago

That makes sense, thanks for the clarification.

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Adell

2 months ago

So, the variable cost would be $29.

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Venita

2 months ago

I agree, the math does check out.

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Linette

3 months ago

I think the answer is C.

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Levi

3 months ago

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

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Kami

3 months ago

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

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Barrett

3 months ago

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

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Salome

3 months ago

I think the answer is $25.

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