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CIMAPRA17-BA2-1 Exam - Topic 1 Question 8 Discussion

An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.Which TWO of the following statements are valid? (Choose two.)
A) If the contribution to sales ratio changed to 30%, the breakeven point would become higher. and C) If the sales volume changed to 220,000 units, the breakeven point would not change.
B) If the fixed cost changed to $445,000, the breakeven point would not change.
D) If the selling price changed to $22 per unit, the breakeven point would become lower.
E) If the variable cost changed to $16 per unit, the breakeven point would become lower.

CIMAPRA17-BA2-1 Exam - Topic 1 Question 8 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 8
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

Show Suggested Answer Hide Answer
Suggested Answer: A, C

by Portia at May 07, 2022, 01:06 PM

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Carin
10 months ago
Not sure about C, sales volume changes usually impact breakeven.
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Jesusa
10 months ago
E makes sense, lower variable costs reduce breakeven.
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Corazon
11 months ago
Wait, how can B be true? Fixed costs always affect breakeven!
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Jennie
11 months ago
Totally agree, D is definitely valid!
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Annmarie
11 months ago
A higher contribution ratio means a higher breakeven point.
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Glenn
11 months ago
Hmm, I'm a bit unsure about this one. The alerts seem pretty serious, like potential security breaches, so I'm thinking maybe Medium or High severity would be the right choice.
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Ahmed
11 months ago
Hmm, I'm a bit unsure about this. I know the upgrade won't touch the data, but I'm not sure if it will overwrite any custom extensions. I'll need to double-check the details on that.
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Emilio
11 months ago
The question seems straightforward enough. I'd just use the concat method instead of union, and make sure to pass in the appropriate arguments to handle the column name mismatch. Shouldn't be too difficult.
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