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CIMAPRA17-BA2-1 Exam - Topic 1 Question 44 Discussion

The unit data for a product are:(a) selling price 12(b) variable cost 6.If selling prices are reduced by 10% and variable costs are increased by 12.5%, which of the following is the revised profit/volume ratio?
D) 0.542
A) 0.375
B) 0.5
C) 0.4875

CIMAPRA17-BA2-1 Exam - Topic 1 Question 44 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 44
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

The unit data for a product are:

(a) selling price 12

(b) variable cost 6.

If selling prices are reduced by 10% and variable costs are increased by 12.5%, which of the following is the revised profit/volume ratio?

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Suggested Answer: D

by Daniel at Nov 21, 2022, 12:47 AM

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Jose
8 months ago
Totally agree, 0.4875 seems right!
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Teri
9 months ago
Wait, are we sure about those calculations?
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Providencia
9 months ago
I think the profit/volume ratio is around 0.4875.
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Apolonia
9 months ago
Variable cost rises to 6.75 with that increase.
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Ashanti
9 months ago
Selling price goes to 10.8 after 10% off.
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Ariel
9 months ago
I feel like I’ve seen a question like this before, but I can't remember the exact formula for the profit/volume ratio. I hope I can figure it out during the exam!
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Jesus
9 months ago
If I recall correctly, after reducing the selling price and increasing the variable cost, we need to recalculate the new profit first. I hope I did that right!
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Laurel
9 months ago
I think the profit/volume ratio is calculated by taking the profit per unit divided by the selling price, but I’m a bit confused about the percentage changes.
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Olive
10 months ago
I remember we did a similar question in class about profit margins, but I'm not sure how to adjust the costs and prices correctly here.
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Stephen
10 months ago
This question seems straightforward. I think the answer is C, since both installation/acceptance and a right of return would indicate that delivery has not occurred.
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Bulah
10 months ago
I feel like the refurbishment could help BBB's image and attract more customers, but would it really have a long-term impact compared to external factors like competition?
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Herman
10 months ago
Okay, I've got this. The description fits Kismet perfectly - it's the go-to tool for war driving, detecting rogue APs, and analyzing wireless network data. I'm confident Kismet is the right answer here.
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Dortha
10 months ago
I think the answer has to be about balancing strategic and tactical goals, right? I remember practicing a similar question.
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Delmy
1 year ago
I hope the correct answer isn't '42' because that's the only number I know how to calculate. Guess I'll have to put my math hat on for this one.
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Gianna
1 year ago
C) 0.4875
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Vanesa
1 year ago
B) 0.5
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Lili
1 year ago
A) 0.375
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Osvaldo
1 year ago
Wait, is this a trick question? I feel like I'm about to fall into a 'profit/volume' ratio black hole. Time to use my best logical thinking skills.
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Shakira
1 year ago
D) 0.542
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Elvera
1 year ago
C) 0.4875
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Mirta
1 year ago
B) 0.5
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Cecil
1 year ago
A) 0.375
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Jamey
1 year ago
D) 0.542
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Mozell
1 year ago
C) 0.4875
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Rory
1 year ago
B) 0.5
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Evangelina
1 year ago
A) 0.375
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Izetta
1 year ago
I bet the exam creator is just trying to trip us up with all these percentages. But no worries, I've got this! Profit/volume ratio, here I come.
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Jeanice
1 year ago
Okay, so the selling price is reduced by 10%, and the variable cost is increased by 12.5%. Time to break out the calculator and crunch some numbers!
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Tommy
1 year ago
I think the revised profit/volume ratio is 0.4875.
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Anglea
1 year ago
Let's calculate the new profit/volume ratio.
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Bette
1 year ago
Hmm, let's see. With the given information, I need to recalculate the profit/volume ratio. This seems like a straightforward math problem, but I better double-check my work.
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Cordelia
1 year ago
I'm not sure, but I think I agree with Samira. The answer might be C) 0.4875.
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Roy
1 year ago
I disagree, I believe the answer is D) 0.542.
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Samira
1 year ago
I think the answer is C) 0.4875.
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