Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

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?

Show Suggested Answer Hide Answer
Suggested Answer: B

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

Limited Time Offer

25%

Off

Get Premium CIMAPRA17-BA2-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

0/2000 characters
Submit Cancel
Adell
9 months ago
Contribution per unit is 3, so profit = 24k.
upvoted 0 times
...
Thea
10 months ago
Totally agree, 24k makes sense!
upvoted 0 times
...
Evette
10 months ago
Wait, are we sure about that profit calculation?
upvoted 0 times
...
Christiane
10 months ago
Profit should be 24,000 based on those numbers!
upvoted 0 times
...
Anthony
10 months ago
Break-even at 40k units, margin of safety 20%.
upvoted 0 times
...
Dana
10 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?
upvoted 0 times
...
Elbert
11 months ago
I'm a bit unsure about how to calculate the budgeted profit from the break-even point and margin of safety.
upvoted 0 times
...
Daron
11 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.
upvoted 0 times
...
Amos
11 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.
upvoted 0 times
...
Eleni
11 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.
upvoted 0 times
...
Thurman
11 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!
upvoted 0 times
...
Jenelle
11 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.
upvoted 0 times
...
Antonio
11 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.
upvoted 0 times
...
Donette
11 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.
upvoted 0 times
...
Caprice
11 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.
upvoted 0 times
...
Gregoria
11 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.
upvoted 0 times
...
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.
upvoted 0 times
Desmond
1 year ago
I'm pretty sure it's A) 8,000.
upvoted 0 times
...
Alishia
1 year ago
No, I believe it's C) 30,000.
upvoted 0 times
...
Eva
1 year ago
I think the answer is B) 24,000.
upvoted 0 times
...
...
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.
upvoted 0 times
Edelmira
1 year ago
Well, let's see if the correct answer is C or D.
upvoted 0 times
...
Leonida
1 year ago
I'm not so sure, I think it might actually be D, 40,000.
upvoted 0 times
...
Dona
1 year ago
I agree, C does seem like a more reasonable choice.
upvoted 0 times
...
Jamal
1 year ago
I think I'll go with C, 30,000. It just makes more sense to me.
upvoted 0 times
...
...
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.
upvoted 0 times
...
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.
upvoted 0 times
Enola
1 year ago
B) 24,000
upvoted 0 times
...
Alpha
1 year ago
A) 8,000
upvoted 0 times
...
...
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.
upvoted 0 times
Nada
1 year ago
I believe the budgeted profit is 24,000.
upvoted 0 times
...
Mariann
1 year ago
I agree, the contribution per unit is 3.
upvoted 0 times
...
Alyce
1 year ago
The margin of safety is 20%.
upvoted 0 times
...
Jacqueline
1 year ago
I think the break-even point is 40,000 units.
upvoted 0 times
...
...
Dominic
1 year ago
I'm not sure. Can someone explain how the margin of safety affects the budgeted profit?
upvoted 0 times
...
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.
upvoted 0 times
...
Vonda
1 year ago
I think the answer is B) 24,000.
upvoted 0 times
...

Save Cancel