CIMAPRA17-BA2-1 Exam - Topic 4 Question 79 Discussion

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

Question #: 79
Topic #: 4

[All CIMAPRA17-BA2-1 Questions]

Refer to the exhibit.

ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:

What selling price would be required for ZAP to break even?

A$1.65

B$1.20

C$1.25

D$0.80

Show Suggested Answer

Suggested Answer: C

by Emmanuel at Sep 09, 2024, 04:16 PM

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Gary

8 months ago

Totally agree, $1.25 is the sweet spot!

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Cherelle

8 months ago

$1.20 sounds right based on their costs.

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Na

8 months ago

Wait, how can they break even at $1.65? Seems high!

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Rory

8 months ago

Definitely not $0.80, that's way too low!

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Dominque

9 months ago

I think the break-even price is $1.25.

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Mozelle

9 months ago

I’m leaning towards $1.20, but I remember there were some tricky parts in the practice questions that threw me off.

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Ettie

9 months ago

I feel like $1.25 could be the right answer, but I’m worried I might be mixing up the costs.

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Lucina

9 months ago

I think the break-even price depends on fixed and variable costs, but I can’t recall the exact numbers from the budget.

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Alaine

9 months ago

I remember we did a similar question about calculating break-even prices in class, but I’m not sure if I got the formula right.

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Chantay

9 months ago

Ugh, I'm a bit confused on how to approach this. Break-even analysis isn't my strongest area. I'll have to re-read the question carefully and try to break it down.

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Dorsey

9 months ago

Alright, let's do this! I remember learning about break-even analysis in class. I think I can work through this systematically and arrive at the right answer.

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Nieves

9 months ago

Hmm, this looks like a break-even analysis question. I'll need to find the total costs and divide by the expected sales volume to get the required selling price.

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Taryn

10 months ago

Okay, I see the budget information provided. Now I just need to figure out how to use that to calculate the break-even selling price. Gotta think this through step-by-step.

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Marnie

10 months ago

Hmm, I'm a little unsure about this one. I know we covered content elements in class, but I can't quite remember the specific terminology. I'll have to think this through carefully.

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Adolph

10 months ago

I remember learning about the FCRA in class, but I'm drawing a blank on the specifics right now. I'll just have to make an educated guess on this one and hope for the best.

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Mari

1 year ago

Wait, ZAP is a magazine for teenagers? I bet the budget includes a line item for 'glitter and pineapple-scented ink' alone.

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Herminia

1 year ago

D) $0.80

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Rolland

1 year ago

C) $1.25

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Tegan

1 year ago

B) $1.20

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Frederica

1 year ago

A) $1.65

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Brendan

1 year ago

A) $1.65 is way too high. ZAP is targeting a teenage market, so they need to keep the price affordable.

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Pauline

1 year ago

D) $0.80 might be too low for ZAP to cover their costs and break even.

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Renato

1 year ago

C) $1.25 could also work, as long as it is not too high for the teenage market.

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Rosina

1 year ago

B) $1.20 seems like a reasonable selling price for ZAP to break even.

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Lavonne

1 year ago

D) $0.80 seems too low. Surely the magazine needs to at least cover its costs, and $0.80 per copy doesn't seem enough to do that.

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Marjory

1 year ago

D) $0.80 might be risky, but if they can sell a large volume, they could still break even.

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Annelle

1 year ago

C) $1.25 could be a good balance between covering costs and appealing to the target audience.

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Hermila

1 year ago

B) $1.20 might be too high for the teenage market. They might not be willing to pay that much.

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Alline

1 year ago

A) $1.65 seems like a more reasonable price to cover costs and make a profit.

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Lyla

1 year ago

I'm going with B) $1.20. The budget doesn't mention any profit margin, so the breakeven point should be the total cost divided by the number of units sold.

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Tiera

1 year ago

I think the correct answer is C) $1.25. The question states that ZAP needs to break even, so the selling price should cover the total costs of production and distribution.

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