CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 90 Discussion

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

Question #: 90
Topic #: 2

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.)

AIf the contribution to sales ratio changed to 30%, the breakeven point would become higher.

BIf the fixed cost changed to $445,000, the breakeven point would not change.

CIf the sales volume changed to 220,000 units, the breakeven point would not change.

DIf the selling price changed to $22 per unit, the breakeven point would become lower.

EIf the variable cost changed to $16 per unit, the breakeven point would become lower.

Show Suggested Answer

Suggested Answer: A, C

by Alton at Feb 12, 2025, 05:31 PM

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Jamal

2 months ago

Haha, yeah, those pineapple questions are the worst! Anyway, I'm going with B and D. Gotta love it when the math works out nicely.

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Luis

24 days ago

Yeah, I also chose B and D. It's satisfying when the numbers line up perfectly.

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Truman

27 days ago

I agree, those pineapple questions are tricky. I think B and D are the correct statements.

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Veronica

2 months ago

Hmm, I'm not sure about C. Wouldn't the breakeven point change if the sales volume changed? Oh well, at least this isn't like that one exam question about penguins and pineapples.

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Erick

1 months ago

B) If the fixed cost changed to $445,000, the breakeven point would not change.

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Katie

1 months ago

A) If the contribution to sales ratio changed to 30%, the breakeven point would become higher.

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Roxanne

2 months ago

I believe statement E is also valid because lower variable costs would decrease the breakeven point.

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Chantell

2 months ago

I agree with Vanna. Fixed costs do not impact the breakeven point.

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Allene

2 months ago

I think option E is also correct. If the variable cost decreases, the breakeven point would become lower.

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Dahlia

2 months ago

The correct answers are B and D. If the fixed cost changes, the breakeven point won't change. And if the selling price increases, the breakeven point will decrease.

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