CIMAPRA17-BA2-1 Exam - Topic 1 Question 97 Discussion

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

Question #: 97
Topic #: 1

Refer to the exhibit.

A company requires 2,000 units each of components X, Y and Z during the next period. All three components are made on the same machine which has a capacity of 26,000 hours for next period. No inventories are held.

Data for the three components are as follows:

In order to minimize cost, how many units of component X should be purchased from the external supplier?

ANone

B500

C1,500

D2,000

Show Suggested Answer

Suggested Answer: B

by Ling at Jul 08, 2025, 08:40 PM

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Yolande

7 months ago

I disagree, 500 units might be a safer bet.

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Nieves

7 months ago

I think they should go for option A, none from the supplier.

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Lili

8 months ago

Wait, can they really produce all that in 26,000 hours?

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Herman

8 months ago

Sounds too good to be true, how does that even work?

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Lezlie

8 months ago

The company needs 2,000 units of each component.

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Brandee

8 months ago

I vaguely recall that if the machine can handle all the components, we might not need to buy any from the supplier. But I can't remember the exact calculations we did.

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Rosalind

8 months ago

I'm a bit confused about whether we should prioritize internal production or just buy everything externally. I hope I remember the cost minimization strategy correctly.

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Coral

9 months ago

I think we had a similar practice question where we had to decide how much to outsource. I feel like the answer might depend on the machine's capacity.

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Elke

9 months ago

I remember we discussed how to calculate the total hours needed for each component, but I'm not sure how to apply that here.

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Bettina

9 months ago

I'm a bit confused by this one. There are a lot of factors to consider, like the capacity of the machine and the production times for each component. I'll need to take my time and really think through the best solution.

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Xenia

9 months ago

Okay, I think I've got a strategy here. I'll need to minimize the total cost by balancing the internal production and external purchase of component X. Let me work through the numbers.

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Domingo

9 months ago

Hmm, this is a tricky one. I'll need to do some calculations to figure out the best approach. Maybe I should start by looking at the production time for each component.

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Christa

9 months ago

This looks like a classic optimization problem. I'll need to carefully analyze the capacity constraints and component requirements to determine the optimal number of units to purchase externally.

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Kirk

11 months ago

I'm feeling lucky, so I'm going to go with A) None. If we can't make all the components internally, we should just cancel the project and take a vacation. Who needs components anyway? *laughs*

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Billye

11 months ago

I agree with Gwen. B) 500 seems like the correct answer to minimize cost.

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Jean

11 months ago

D) 2,000 all the way! Why bother with the hassle of calculating production capacities and stuff? Just buy everything from the external supplier and call it a day. Easy peasy!

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Eileen

10 months ago

A) None

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Gwen

11 months ago

Because the machine has a capacity of 26,000 hours and we need 2,000 units of each component. So, we can only produce 24,000 units in total.

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Rebeca

12 months ago

Hmm, this seems like a classic optimization problem. I'm going to go with C) 1,500. That way, we can maximize the use of our in-house production capacity and only buy what we can't make ourselves.

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Lashandra

11 months ago

User2: I agree with User1. Buying 1,500 units seems excessive.

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Desmond

11 months ago

User1: I think the answer is B) 500. We should only buy what we absolutely need.

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Herman

12 months ago

I think the answer is B) 500. The company requires 2,000 units each of components X, Y, and Z, and the machine has a capacity of 26,000 hours. If we can't make all the components internally, it's best to purchase the minimum number of units from the external supplier to minimize cost.

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