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

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 90
Topic #: 2
[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 Alton at Feb 12, 2025, 05:31 PM

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Phillip
8 months ago
Changing variable costs to $16 would lower the breakeven for sure!
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Refugia
8 months ago
If selling price goes down, breakeven point definitely goes up.
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Lawana
8 months ago
Wait, how can the breakeven point not change with fixed costs? That sounds off.
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Nina
8 months ago
Totally agree, D and E seem right!
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Lucina
9 months ago
A higher contribution to sales ratio means a lower breakeven point, not higher.
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Erick
9 months ago
I feel like I’ve seen a question about how selling price affects the breakeven point, and I think if the price goes down, the breakeven point goes up, so D might be correct.
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Celestine
9 months ago
I’m a bit confused about option C. If sales volume changes, wouldn’t that impact how many units we need to sell to break even?
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Una
9 months ago
I think I practiced a similar question where fixed costs were involved, and I recall that if fixed costs increase, the breakeven point goes up. So, B seems wrong to me.
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Leonora
9 months ago
I remember that if the contribution margin changes, it definitely affects the breakeven point, but I'm not sure if a higher contribution ratio means a higher breakeven point.
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Davida
9 months ago
Hmm, this is a tricky one. I'll need to think through each scenario carefully and make sure I'm not making any assumptions. Breakeven point can be a bit finicky, so I'll need to double-check my work.
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Leandro
9 months ago
No problem, I've got this. Breakeven analysis is one of my strengths. I can quickly identify the valid statements by applying the formulas and logic. Time to put my knowledge to the test.
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Ruthann
9 months ago
I'm a bit confused by the different options here. I'll need to make sure I fully understand the concept of breakeven point and how it's affected by changes in the various cost and revenue factors. Gotta be careful not to overthink this.
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Renea
9 months ago
Okay, let's see here. The key is to understand how the breakeven point is calculated and then apply that knowledge to the given scenarios. I think I can work through this step-by-step.
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Tawanna
10 months ago
Hmm, this looks like a classic breakeven analysis problem. I'll need to carefully review the information provided and think through how changes to the different variables would impact the breakeven point.
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Jamal
1 year 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
1 year ago
Yeah, I also chose B and D. It's satisfying when the numbers line up perfectly.
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Truman
1 year ago
I agree, those pineapple questions are tricky. I think B and D are the correct statements.
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Veronica
1 year 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 year ago
B) If the fixed cost changed to $445,000, the breakeven point would not change.
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Katie
1 year ago
A) If the contribution to sales ratio changed to 30%, the breakeven point would become higher.
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Roxanne
1 year ago
I believe statement E is also valid because lower variable costs would decrease the breakeven point.
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Chantell
1 year ago
I agree with Vanna. Fixed costs do not impact the breakeven point.
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Allene
1 year ago
I think option E is also correct. If the variable cost decreases, the breakeven point would become lower.
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Dahlia
1 year 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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Fernanda
1 year ago
Exactly, that's why the correct answers are B and D.
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Launa
1 year ago
So, if the selling price increases, the breakeven point will decrease, right?
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Yuki
1 year ago
Yes, if the fixed cost changes, the breakeven point won't change.
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Elise
1 year ago
I think the fixed cost is a key factor in determining the breakeven point.
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Vanna
1 year ago
I think statement B is valid because fixed costs do not affect the breakeven point.
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