CIMA Exam CIMAPRA17-BA2-1 Topic 1 Question 78 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 78
Topic #: 1

[All CIMAPRA17-BA2-1 Questions]

A company achieves a profit/volume ratio of 25%. Sales for the month of July were 127,280 and fixed costs were 24,872.

What was the profit for the month?

A6,218

B38,038

C6,948

D25,602

Show Suggested Answer

Suggested Answer: C

by Emiko at Aug 29, 2024, 12:42 AM

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Lai

4 months ago

I bet the correct answer is something like 'All of the above' or 'None of the above'. Classic exam move, right?

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Elvis

2 months ago

D) 25,602

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Art

2 months ago

C) 6,948

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Nieves

2 months ago

B) 38,038

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Erinn

3 months ago

A) 6,218

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Gretchen

4 months ago

Whoa, hold up! What is this, a trick question? I'm going to double-check my work before submitting.

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Pete

4 months ago

Okay, this looks straightforward. I'm going with option B, 38,038. Feels like the right answer to me.

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Merissa

4 months ago

Alright, time to put on my math hat. Profit = Sales * Profit/Volume Ratio - Fixed Costs. Piece of cake!

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Karol

3 months ago

So, the profit for the month was 6,948. Easy math!

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Carol

3 months ago

Profit = 127,280 * 0.25 - 24,872 = 6,948

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Walker

4 months ago

But the profit/volume ratio is 25%, so it should be 6,218.

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Denny

4 months ago

Hmm, let's see, 25% profit/volume ratio, sales of 127,280, and fixed costs of 24,872. Gotta use that formula, right?

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Dalene

3 months ago

D) 25,602

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Rocco

3 months ago

C) 6,948

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Izetta

3 months ago

B) 38,038

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Alex

4 months ago

A) 6,218

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Tamera

5 months ago

I believe the profit was 25,602.

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Walker

5 months ago

I think the profit was 6,218.

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