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CIMAPRA17-BA2-1 Exam - Topic 1 Question 71 Discussion

A product has a break-even point of 40,000 units and a margin of safety of 20%. The contribution per unit is 3.What is the budgeted profit?
B) 24,000
A) 8,000
C) 30,000
D) 40,000

CIMAPRA17-BA2-1 Exam - Topic 1 Question 71 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 71
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

A product has a break-even point of 40,000 units and a margin of safety of 20%. The contribution per unit is 3.

What is the budgeted profit?

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Suggested Answer: B

by Rozella at May 18, 2024, 04:04 AM

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Adell
8 months ago
Contribution per unit is 3, so profit = 24k.
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Thea
8 months ago
Totally agree, 24k makes sense!
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Evette
8 months ago
Wait, are we sure about that profit calculation?
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Christiane
8 months ago
Profit should be 24,000 based on those numbers!
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Anthony
9 months ago
Break-even at 40k units, margin of safety 20%.
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Dana
9 months ago
If the break-even is 40,000 units and we have a margin of safety, doesn't that mean we need to find the total sales first?
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Elbert
9 months ago
I'm a bit unsure about how to calculate the budgeted profit from the break-even point and margin of safety.
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Daron
9 months ago
I remember practicing a similar question where we had to calculate profit using contribution per unit. I hope I can apply that here.
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Amos
9 months ago
I think the margin of safety is 20% of the break-even point, so that might help us find the actual sales units.
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Eleni
9 months ago
Wait, what's the contribution per unit again? I need to make sure I have all the necessary information before I start calculating.
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Thurman
9 months ago
This looks straightforward. I just need to plug the numbers into the right formula and solve for the budgeted profit. I've got this!
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Jenelle
9 months ago
Hmm, I'm a bit confused. How do I use the margin of safety to find the budgeted profit? I'll need to review my notes on this type of problem.
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Antonio
9 months ago
Okay, I think I can handle this. The key is to use the given information about the break-even point and margin of safety to calculate the budgeted profit.
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Donette
10 months ago
I'm pretty confident the answer is B - a test design tool to create the test cases efficiently. That seems like the most relevant for the E2E phase.
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Caprice
10 months ago
Hmm, this seems like a tricky one. I'll need to think carefully about where Splunk would log information related to bad event breaking.
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Gregoria
10 months ago
I'm not really sure about C, but I remember we discussed how some theories assume too much about human behavior and can oversimplify things.
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Margarett
1 year ago
This question is a real head-scratcher. Maybe I should just flip a coin and hope for the best. Or maybe I'll just ask the instructor to give me the answer - they're probably tired of watching us struggle with these tricky accounting problems anyway.
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Desmond
1 year ago
I'm pretty sure it's A) 8,000.
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Alishia
1 year ago
No, I believe it's C) 30,000.
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Eva
1 year ago
I think the answer is B) 24,000.
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Destiny
1 year ago
Option D, 40,000? Really? That seems way too high. I think I'll go with C, 30,000. It just makes more sense to me.
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Edelmira
1 year ago
Well, let's see if the correct answer is C or D.
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Leonida
1 year ago
I'm not so sure, I think it might actually be D, 40,000.
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Dona
1 year ago
I agree, C does seem like a more reasonable choice.
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Jamal
1 year ago
I think I'll go with C, 30,000. It just makes more sense to me.
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Shay
1 year ago
Aha! I've got it. The correct answer is C, 30,000. I just need to do the math: 40,000 units - (40,000 * 0.2) = 32,000 units, and 32,000 * 3 = 96,000, so the budgeted profit is 96,000 - 66,000 = 30,000.
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Merrilee
1 year ago
I'm not too sure about this one. The break-even point is 40,000 units, but the question is asking for the budgeted profit. I'm going to have to think this through a bit more.
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Enola
1 year ago
B) 24,000
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Alpha
1 year ago
A) 8,000
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Quiana
1 year ago
Hmm, I'm going to go with option B. 24,000 seems like the right answer since the margin of safety is 20% and the contribution per unit is 3.
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Nada
1 year ago
I believe the budgeted profit is 24,000.
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Mariann
1 year ago
I agree, the contribution per unit is 3.
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Alyce
1 year ago
The margin of safety is 20%.
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Jacqueline
1 year ago
I think the break-even point is 40,000 units.
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Dominic
1 year ago
I'm not sure. Can someone explain how the margin of safety affects the budgeted profit?
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Lennie
1 year ago
I agree with Vonda. The margin of safety is 20%, so the budgeted profit should be 20% of the break-even point.
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Vonda
1 year ago
I think the answer is B) 24,000.
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