MENU
A company which manufactures and sells one product has fixed costs of $80,000 per period. The selling price per unit of $25 generates a contribution/sales ratio of 40%.
How many units would need to be sold in a period to earn a profit of $10,000?
Suggested Answer: B
Get Premium CIMAPRA17-BA2-1 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
39 comments · newest first
SH
Sherron
11 months ago
Are we sure about those numbers? Sounds off to me.
MO
Monroe
11 months ago
Definitely not 36,000, that's way too high!
JE
Jesusita
11 months ago
Wait, how does the contribution ratio affect this?
FA
Fanny
12 months ago
I think it's around 9,000 units, right?
VE
Veda
12 months ago
To break even, you need to cover fixed costs first!
FR
Frank
1 year ago
I practiced a similar question last week, and I think the answer was around 8,000 units, but I need to double-check my calculations.
DA
Darci
1 year ago
If I recall correctly, we need to cover both fixed costs and the desired profit, so it might be something like (fixed costs + profit) / contribution per unit.
LE
Leonard
1 year ago
I think we need to find the contribution margin first, which is based on the selling price and the contribution/sales ratio.
CA
Carman
1 year ago
I remember we calculated break-even points in class, but I'm not sure how to adjust for the profit target here.
TI
Timothy
1 year ago
Okay, I think I see how to approach this. If we know the contribution/sales ratio, we can use that to calculate the contribution margin per unit. Then we can set up an equation to solve for the number of units needed to reach the target profit. Time to give it a shot!
DE
Derrick
1 year ago
Ugh, I'm a bit lost on this one. The contribution margin and fixed costs are throwing me off. I'll have to re-read the question carefully and try to break it down step-by-step.
SY
Sylvie
1 year ago
I've got this! The key is to use the contribution margin formula to find the number of units needed to cover the fixed costs and reach the target profit. Let me work through the math quickly.
JE
Jestine
1 year ago
Hmm, this looks tricky. I'm not totally sure where to start, but I think I'll try to set up an equation with the given information and see if I can solve for the number of units.
VI
Viola
1 year ago
Okay, let's think this through step-by-step. We have the fixed costs, the selling price, and the contribution/sales ratio. I think we need to use the contribution margin formula to find the number of units needed to reach the target profit.
MA
Marci
1 year ago
Okay, the key here is that the network is configured for EIGRP equal-cost balancing, but the traffic is not being load-balanced. I think the solution is to check the EIGRP configuration and ensure the metrics are set correctly.
VA
Vallie
1 year ago
Hmm, I'm a bit unsure about this one. I know the different zones are important for Expressway configurations, but I can't quite recall which one is specifically required between Expressway-C and Expressway-E. I'll have to think this through carefully.
CH
Christene
1 year ago
Okay, the exhibit shows a diagram with different network hops. Based on that, I think the answer is 6 hops, which corresponds to option B.
ED
Eden
1 year ago
This reminds me of a practice question where we discussed the sniffer mode too. Was that the right choice for Layer 1 surveys?
VI
Vivan
2 years ago
Time to unleash my inner accountant! This is right up my alley. I bet I can solve this in my sleep.
CA
Cassandra
1 year ago
After solving, we find that 8,000 units need to be sold in a period to earn a profit of $10,000. So, the answer is B) 8,000.
TR
Tresa
1 year ago
Let's plug in the numbers and solve for Units. Profit = ($25 * Units) - ($10 * Units) - $80,000
KA
Kattie
1 year ago
We need to use the formula: Profit = (Selling Price * Units) - (Variable Cost * Units) - Fixed Costs
IV
Ivan
2 years ago
Haha, looks like they're trying to trick us with all these numbers. Better stay focused and not get too distracted by the fancy jargon.
JE
Jennie
1 year ago
Yes, that's correct. We would need to sell 8,000 units to earn a profit of $10,000.
DO
Dong
1 year ago
So, the answer would be 8,000 units, right?
HU
Hubert
1 year ago
I think we can use the contribution/sales ratio to calculate this.
CE
Ceola
1 year ago
We need to figure out how many units to sell to make a profit of $10,000.
VA
Valda
2 years ago
Ooh, this looks tricky. I better double-check my work to make sure I don't end up with the wrong answer. Can't afford to lose points on this one!
PH
Phil
1 year ago
B) 8,000
TE
Terrilyn
1 year ago
A) 9,000
DO
Donte
1 year ago
B) 8,000
CA
Catherin
1 year ago
A) 9,000
DO
Dottie
2 years ago
This seems like a straightforward break-even analysis problem. I'll have to calculate the contribution margin per unit and the total fixed costs to find the number of units needed to reach the target profit.
MO
Moon
2 years ago
So, the contribution per unit is $10. We can use this to find the number of units needed to earn a profit of $10,000.
TA
Tamie
2 years ago
I agree. The contribution margin is 40% of the selling price.
MO
Moon
2 years ago
I think we need to calculate the contribution margin first.
JI
Jina
2 years ago
So, to earn a profit of $10,000, we need to cover the fixed costs and then make an additional $10,000.
FA
Fairy
2 years ago
I agree. The contribution margin is 40%.
JI
Jina
2 years ago
I think we need to calculate the contribution margin first.