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CIMAPRA17-BA2-1 Exam - Topic 1 Question 99 Discussion

A company can increase its margin of safety by which of the following independent actions?(a) Increasing sales and production(b) Raising the selling price per unit(c) Raising the variable cost per unit(d) Lowering fixed costs
C) (a), (b) and (d) only
A) (a) and (b) only
B) (a), (b) and (c) only
D) (a), (c) and (d) only

CIMAPRA17-BA2-1 Exam - Topic 1 Question 99 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 99
Topic #: 1
[All CIMAPRA17-BA2-1 Questions]

A company can increase its margin of safety by which of the following independent actions?

(a) Increasing sales and production

(b) Raising the selling price per unit

(c) Raising the variable cost per unit

(d) Lowering fixed costs

Show Suggested Answer Hide Answer
Suggested Answer: C

by Theresia at Aug 16, 2025, 01:09 PM

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Annabelle
7 months ago
(a), (b), and (d) are the way to go for sure!
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Wilson
7 months ago
Lowering fixed costs is a smart move too!
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Skye
8 months ago
Wait, raising variable costs? That sounds off.
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Carmelina
8 months ago
I think (c) would actually hurt margins, not help.
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Inocencia
8 months ago
Definitely (a) and (b) will help!
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Veda
8 months ago
I'm a bit uncertain about option (c) since raising variable costs seems counterintuitive to increasing safety margins.
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Carli
9 months ago
I practiced a similar question where lowering fixed costs was a clear way to improve margin of safety, so I feel confident about that part.
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Devora
9 months ago
I think raising the selling price per unit would also increase the margin of safety, but I can't recall if it affects all scenarios.
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Hortencia
9 months ago
I remember that increasing sales and production definitely helps with margin of safety, but I'm not sure about the impact of raising variable costs.
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Meghann
9 months ago
I'm pretty confident that the correct answer is (a) and (b) only. Increasing sales and production, and raising the selling price per unit, are the two independent actions that can increase the margin of safety.
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Pilar
9 months ago
Okay, I think I've got it. Increasing sales and production, raising the selling price, and lowering fixed costs - that makes sense to me as the best way to increase the margin of safety. I'll go with option (c).
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Van
10 months ago
Hmm, I'm a bit confused. Raising the variable cost per unit doesn't seem like it would increase the margin of safety. Let me think this through again carefully.
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Dean
10 months ago
This seems straightforward - increasing sales and production, raising the selling price, and lowering fixed costs should all increase the margin of safety. I'll go with option (c) to be safe.
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Dudley
10 months ago
I believe lowering fixed costs is crucial for increasing margin of safety.
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Isreal
10 months ago
I agree, but raising the selling price per unit can also help.
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Fletcher
10 months ago
I think increasing sales and production is key.
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Katlyn
11 months ago
Hmm, I think the answer is (C). Increasing sales and production, raising the selling price, and lowering fixed costs - that's the triple play for boosting the margin of safety. Gotta love those economics terms, right?
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Tarra
10 months ago
Absolutely, it's all about maximizing profits and minimizing risks in business.
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Amber
10 months ago
I agree, (C) is the correct answer. Those actions definitely help increase the margin of safety.
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Sena
10 months ago
I agree, (C) is the correct answer. Those actions definitely help increase the margin of safety.
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