CIMAPRO19-P01-1 Exam - Topic 8 Question 94 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 94
Topic #: 8

A company makes two products, product X with a contribution per unit of $10 and product Y with a contribution per unit of $4.

These products are sold in the mix 3:2 by volume and fixed costs are $38,000 per period.

The breakeven point for product Y, based on the expected sales mix is:

A2000 units per period

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Suggested Answer: A, D, E

References:

by Lizbeth at Aug 07, 2024, 07:28 PM

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Loreta

8 months ago

Fixed costs are $38,000, so it checks out.

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Karon

8 months ago

Totally agree, that makes sense!

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Fausto

8 months ago

Wait, are you sure about that? Seems off.

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Romana

8 months ago

Yep, it's 2000 units!

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Frederica

9 months ago

Breakeven for Y is based on the sales mix, right?

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Donette

9 months ago

I'm a bit lost on how to apply the sales mix here. Do we need to adjust the contribution per unit for product Y somehow?

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Skye

9 months ago

If I recall correctly, we should find the total contribution from both products based on the sales mix before calculating the breakeven for product Y.

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Wynell

9 months ago

I remember a similar question where we had to find the breakeven point using a sales mix. I think we divide fixed costs by the contribution margin.

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Cordelia

9 months ago

I think we need to calculate the weighted average contribution first, but I'm not entirely sure how to set that up.

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Janessa

9 months ago

Wait, do I need to consider the sales mix when calculating the breakeven point for product Y? I'm not sure how that factors in.

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Gabriele

9 months ago

This seems straightforward enough. I'll just plug the numbers into the breakeven formula and see what I get.

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Giovanna

9 months ago

I think I've got this. The key is to find the total contribution margin across both products, then use that to calculate the breakeven point for product Y specifically.

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Alex

9 months ago

Hmm, I'm a bit confused about the sales mix. Do I need to factor that in somehow when calculating the breakeven point for product Y?

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Devon

9 months ago

Okay, this looks like a classic breakeven analysis problem. I'll need to find the total contribution margin and then divide the fixed costs by the contribution per unit for product Y.

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Ilda

10 months ago

I'm a little confused here. Should we contact the regulator first to make sure we're handling this properly? Option B might be the best way to start.

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Darrin

10 months ago

I could be wrong, but wasn't the "top down" distribution mentioned in one of our practice quizzes? It seems familiar.

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Karrie

1 year ago

2000 units, eh? I hope the company has a big warehouse to store all those products. Maybe they should consider selling in bulk - that would really shake things up!

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Vincent

1 year ago

You're right, selling in bulk could potentially change the sales mix ratio. It's something to consider for sure.

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Colene

1 year ago

But wouldn't selling in bulk affect the sales mix ratio of 3:2?

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Justine

1 year ago

I agree, bulk sales could be a game changer for the company.

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Miles

1 year ago

That's a good point! Selling in bulk could definitely help with storage space.

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Gerald

1 year ago

2000 units? That's nothing! I bet I could break even on a lemonade stand with that kind of volume.

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Cherrie

1 year ago

2000 units, huh? I wonder if the exam will throw in a curveball and ask for the breakeven point in dollars instead. Either way, I'm feeling confident about this one.

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