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CIMAPRA17-BA2-1 Exam - Topic 3 Question 114 Discussion

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

Question #: 114
Topic #: 3

[All CIMAPRA17-BA2-1 Questions]

An increase in variable costs per unit, where selling price and fixed costs remain constant, will result in which of the following:

AA fall in the number of units required to break-even

BA decrease in the profit/volume ratio

CAn increase in the margin of safety

DAn increase in the contribution per unit

Show Suggested Answer

Suggested Answer: B

by Ardella at Aug 14, 2026, 07:07 AM

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Lashonda

4 days ago

I'm a bit confused about the margin of safety. If costs go up, wouldn't that decrease the margin instead of increasing it?

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Giovanna

9 days ago

I remember practicing a similar question where we discussed how variable costs impact contribution margins. I feel like option B makes sense here.

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Lenita

14 days ago

I think an increase in variable costs would definitely affect the profit/volume ratio, but I'm not entirely sure how it connects to the break-even point.

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