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CIMAPRA17-BA2-1 Exam - Topic 1 Question 11 Discussion

A confectionery manufacturer is considering adding a new product to the current range. Forecast data for the product are as follows.Incremental fixed costs attributable to the new product are forecast to be $24,000 each period.The forecast sales volume of 180 units is insufficient to achieve the target profit of $10,000 each period.Which of the following statements is correct?
C) If the forecast sales volume is changed to 190 units the sales volume required to achieve the target profit will decrease.
A) The margin of safety is negative because the target profit will not be achieved from the forecast sales volume.
B) If the fixed cost is changed to $20,000 the sales volume required to break even will decrease.
D) If the selling price is changed to $510 the sales volume required to achieve the target profit will increase.

CIMAPRA17-BA2-1 Exam - Topic 1 Question 11 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 11
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

A confectionery manufacturer is considering adding a new product to the current range. Forecast data for the product are as follows.

Incremental fixed costs attributable to the new product are forecast to be $24,000 each period.

The forecast sales volume of 180 units is insufficient to achieve the target profit of $10,000 each period.

Which of the following statements is correct?

Show Suggested Answer Hide Answer
Suggested Answer: C

by Kris at May 03, 2022, 06:41 AM

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Carmen
8 months ago
$510 for the selling price? That seems way too high!
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Josphine
9 months ago
Changing fixed costs to $20,000 would help break even for sure!
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Malissa
9 months ago
Wait, if they sell more units, wouldn't that help? Sounds off.
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Gilma
9 months ago
I think A is definitely correct. No way they hit that profit!
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Lashanda
9 months ago
The fixed costs are $24,000, so yeah, that's a lot.
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Carmen
9 months ago
Okay, let me think this through. The question is asking where users can find information on how current and popular a topic is. I'm leaning towards option C, the topic's detail page, since that seems like the most logical place that information would be displayed.
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Catalina
9 months ago
Hmm, I'm a bit unsure about this one. I'll need to think it through step-by-step to make sure I understand what an "active traceback" is and how it relates to network connections.
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Berry
10 months ago
Okay, I think I've got a strategy here. The key is to find the setting that allows Outlook to automatically process the meeting responses without them appearing in the Inbox. The Tracking Options sounds like the most likely place to find that.
upvoted 0 times
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