MENU
A company produces three products D, E and F. The statement below shows the selling price and product costs per unit for each product, based on a traditional absorption costing system.
Each of the products is produced using Process A which has a maximum capacity of 2,500 hours per period.
If a traditional contribution approach is used, the ranking of products, in order of priority, for the profit maximizing product mix will be:
Suggested Answer: A
Get Premium CIMAPRO19-P01-1 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
References:
34 comments · newest first
EU
Eun
12 months ago
F is definitely the least important in this mix.
AS
Ashton
12 months ago
I'm not convinced, the numbers seem off.
CR
Crista
1 year ago
Wait, isn't E more profitable than D?
CE
Cecily
1 year ago
Totally agree, D should be prioritized!
PE
Pearlene
1 year ago
Product D has the highest contribution margin.
LE
Lenita
1 year ago
I vaguely remember that D had a higher contribution margin, but I can't recall if that means it should be first. This is tricky!
BI
Billye
1 year ago
I feel like I might have mixed up the costs and selling prices. I hope I can recall the right calculations during the exam.
JE
Jeniffer
1 year ago
I think we practiced a similar question where we had to prioritize products based on their contribution per hour. I might lean towards option B.
AS
Ashley
1 year ago
I remember we discussed how to calculate contribution margins, but I'm not sure if I got the order right for these products.
SK
Skye
1 year ago
I'm a little confused by the wording of this question. What exactly is a "CIFS share"? And how does that relate to printer driver deployment? I'm not super confident in my answer here.
MY
My
1 year ago
Okay, I've got a strategy for this. I'll focus on understanding the key concepts around MRCP and Genesys integration, and then apply that knowledge to determine the correct answer.
EL
Elliot
1 year ago
Hmm, this looks a bit tricky. I'll need to read through the instructions carefully to make sure I don't miss any important details.
LO
Lore
1 year ago
Hmm, this seems pretty straightforward. We just need to calculate the contribution margin per hour for each product and rank them accordingly. D has the highest at $20 per hour, E is next at $16 per hour, and F is last at $12 per hour. I'm going with D, E, F, and I'll include a sticky note that says 'No F's were harmed in the making of this exam.'
RA
Rashida
1 year ago
That's a clever way to remember the order! D, E, F it is then.
AD
Adelle
1 year ago
I think you're on the right track. D, E, F seems to be the best option based on the information provided.
VI
Vincent
1 year ago
I agree, calculating the contribution margin per hour is the key here. D, E, and F in that order sounds right.
KE
Kenia
2 years ago
Wait, wait, wait. Did you see that? The question says the ranking is C) F, D, F. That's got to be a typo, right? I mean, how can F be both second and third? What kind of messed-up exam is this? I'm just going to go with D, E, F and hope the grader has a sense of humor.
CO
Cortney
1 year ago
Let's hope the grader understands the confusion.
NA
Natalie
1 year ago
I agree, D, E, F seems like the logical choice.
RO
Rosalia
1 year ago
Yeah, that doesn't make sense. I'm going with D, E, F too.
DA
Daniela
1 year ago
I think it's a typo, F can't be both second and third.
LA
Laura
1 year ago
Let's hope the examiners realize the error and give credit for choosing D, E, F. It's the best we can do in this situation.
RE
Rene
1 year ago
I agree, I don't think F can be both second and third. D, E, F seems like the safest option.
RO
Rosenda
1 year ago
Yeah, that does seem strange. I'm going with D, E, F as well. It seems like the most logical choice.
AS
Ashlyn
1 year ago
I think there might be a mistake in the question. It doesn't make sense for F to be both second and third.
LO
Loren
1 year ago
Yeah, I agree. I'm going with D, E, F too. Hopefully, they'll realize the error.
MI
Miriam
1 year ago
I think there might be a mistake in the question. It doesn't make sense for F to be both second and third.
RO
Rosalia
2 years ago
Okay, let's see here. We need to rank the products in order of priority for the profit-maximizing product mix using a traditional contribution approach. The key is to look at the contribution margin per unit of the scarce resource, which in this case is the 2,500 hours of Process A capacity. D has the highest contribution margin per hour, so it should be first, then E, and finally F. Definitely going with D, E, F.
EI
Eileen
2 years ago
But if we focus on maximizing profit, shouldn't we prioritize products with higher contribution margin per unit?
PR
Precious
2 years ago
I disagree, I believe the answer is B) E, D, F.
EI
Eileen
2 years ago
I think the answer is A) D, E, F.
CR
Cristen
2 years ago
But if we consider the contribution approach, D has the highest contribution margin per unit, so it should be the priority.
RO
Rolande
2 years ago
I disagree, I believe the answer is B) E, D, F.
CR
Cristen
2 years ago
I think the answer is A) D, E, F.