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

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?
C) 6,948
A) 6,218
B) 38,038
D) 25,602

CIMAPRA17-BA2-1 Exam - 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?

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Suggested Answer: C

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

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Zona
8 months ago
So, what’s the actual profit figure then?
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Kris
8 months ago
Totally agree, seems like a solid profit!
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Xochitl
8 months ago
Wait, how can profit be that high with those costs?
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Donte
8 months ago
25% profit/volume ratio means profit is 25% of sales.
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Flo
9 months ago
Profit is calculated as sales minus fixed costs.
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Darell
9 months ago
I feel like the profit should be around 6,000 based on my calculations, but I’m not completely confident in my answer.
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Lynette
9 months ago
This seems similar to a practice question we did where we had to subtract fixed costs from the contribution. I hope I remember the calculations right!
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Monte
9 months ago
I think we need to find the contribution first, which is sales minus variable costs, but I can't recall the exact steps.
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Bette
9 months ago
I remember we calculated profit by using the profit/volume ratio, but I'm not sure how to apply it here.
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Theron
9 months ago
This seems straightforward enough. I'll just plug the numbers into the formula: Profit = (Profit/Volume Ratio) x Sales - Fixed Costs. Should be a pretty quick calculation.
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Annice
9 months ago
Okay, I think I've got this. If the profit/volume ratio is 25%, that means profit is 25% of sales. So I just need to calculate 25% of the sales figure and subtract the fixed costs. Let me work through the math.
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Kenneth
9 months ago
Hmm, I'm a bit unsure about how to approach this. I know the profit/volume ratio is 25%, but I'm not sure how to use that to find the actual profit. I'll need to think this through carefully.
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Theron
10 months ago
This looks like a straightforward profit calculation problem. I think I can solve this using the profit/volume ratio and the given sales and fixed costs.
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Felix
10 months ago
I remember discussing the importance of backups in case of internet outages, so I think option A could be the right choice.
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Iluminada
10 months ago
I'm a bit confused on this one. Should I just accept the team's request to reassign the task, or is there a better way to handle it? I'll need to review the options again.
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Janet
10 months ago
I recall us practicing a question similar to this where we had to identify design characteristics, and I feel like option A might be the correct answer here.
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Lai
1 year 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
1 year ago
D) 25,602
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Art
1 year ago
C) 6,948
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Nieves
1 year ago
B) 38,038
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Erinn
1 year ago
A) 6,218
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Gretchen
1 year 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
1 year 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
1 year ago
Alright, time to put on my math hat. Profit = Sales * Profit/Volume Ratio - Fixed Costs. Piece of cake!
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Karol
1 year ago
So, the profit for the month was 6,948. Easy math!
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Carol
1 year ago
Profit = 127,280 * 0.25 - 24,872 = 6,948
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Walker
1 year ago
But the profit/volume ratio is 25%, so it should be 6,218.
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Denny
1 year 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
1 year ago
D) 25,602
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Rocco
1 year ago
C) 6,948
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Izetta
1 year ago
B) 38,038
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Alex
1 year ago
A) 6,218
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Tamera
1 year ago
I believe the profit was 25,602.
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Walker
1 year ago
I think the profit was 6,218.
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