CIMA Exam CIMAPRA17-BA2-1 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?

A8,000

B24,000

C30,000

D40,000

Show Suggested Answer

Suggested Answer: B

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

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Margarett

1 months 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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Eva

9 days ago

I think the answer is B) 24,000.

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Destiny

1 months 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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Jamal

22 days ago

I think I'll go with C, 30,000. It just makes more sense to me.

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Shay

1 months 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

2 months 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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