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CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 57 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 57
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

If the fixed costs are increased, the point at which the line plotted on a profit/volume (PV) graph cuts the horizontal axis will:

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Suggested Answer: C

by Kallie at Sep 03, 2023, 10:50 PM

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Garry
2 days ago
A? Really? Doubling the fixed costs? That's just crazy talk. I'm sticking with B.
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Pok
6 days ago
C seems right to me. The fixed costs don't affect the break-even point, so it should stay the same.
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Winfred
10 days ago
I'm going with D. The higher fixed costs will cause the line to shift downward, so the point where it intersects the horizontal axis will move to the right.
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Anjelica
23 days ago
Hmm, I think the answer is B. If the fixed costs increase, the break-even point will shift to the left, requiring more units to be sold to cover those higher fixed costs.
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Brock
3 days ago
Yes, that's correct. It will require more units to be sold to cover the higher fixed costs.
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Halina
6 days ago
I agree, the break-even point will definitely move to the left if fixed costs increase.
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Tasia
1 months ago
But if fixed costs increase, wouldn't that shift the break-even point to the right on the graph?
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Brittani
1 months ago
I disagree, I believe the answer is D) Move to the right.
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Tasia
1 months ago
I think the answer is C) Stay the same.
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a