CIMA Exam CIMAPRA17-BA2-1 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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Mari

3 months 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

2 months ago

D) $0.80

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Rolland

2 months ago

C) $1.25

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Tegan

2 months ago

B) $1.20

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Frederica

2 months ago

A) $1.65

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Brendan

3 months 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

2 months ago

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

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Renato

2 months ago

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

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Rosina

3 months ago

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

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Lavonne

4 months 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

2 months 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

3 months ago

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

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Hermila

3 months 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

3 months ago

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

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Lyla

4 months 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

4 months 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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