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CIMA Exam CIMAPRO19-P01-1 Topic 8 Question 87 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 87
Topic #: 8
[All CIMAPRO19-P01-1 Questions]

A company produces and sells two products, product A and product B.

What are the total fixed costs when the weighted average contribution per unit is $5 and the breakeven points for product A and product B are 10,000 units and 5,000 units respectively?

Give your answer as a whole number (in 000's).

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Suggested Answer: A, D, E

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by Glory at May 09, 2024, 12:36 PM

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Cassi
18 hours ago
Okay, let's think this through. The weighted average contribution per unit is $5, and the breakeven points for product A and B are 10,000 and 5,000 units, respectively. We need to find the total fixed costs, which is the sum of the breakeven points multiplied by the contribution per unit. Sounds simple enough!
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Claudia
5 days ago
I'm not sure about that, I think we need to calculate it based on the breakeven points for each product.
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Dierdre
6 days ago
I agree with Nadine, because if the weighted average contribution per unit is $5, then the total fixed costs should be $75,000.
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Nadine
10 days ago
I think the total fixed costs are $75,000.
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