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CIMAPRO19-P01-1 Exam - Topic 9 Question 119 Discussion

A company has a budgeted contribution to sales (C/S) ratio of 30% and a budgeted operating profit margin of 20%. Budgeted sales were $100,000.In month 2, actual production and sales volumes and all costs were as budgeted. The actual C/S ratio was 33% .Which of the following statements, about the company's contribution and operating profit in month 2, is correct?
A) Actual operating profit was more than 10% higher than budgeted operating profit.
B) Actual contribution was less than 10% higher than budgeted contribution.
C) Actual operating profit was less than 10% higher than budgeted operating profit.
D) Actual contribution was exactly 10% higher than budgeted contribution.

CIMAPRO19-P01-1 Exam - Topic 9 Question 119 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam
Question #: 119
Topic #: 9
[All CIMAPRO19-P01-1 Questions]

A company has a budgeted contribution to sales (C/S) ratio of 30% and a budgeted operating profit margin of 20%. Budgeted sales were $100,000.

In month 2, actual production and sales volumes and all costs were as budgeted. The actual C/S ratio was 33% .

Which of the following statements, about the company's contribution and operating profit in month 2, is correct?

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Suggested Answer: A

by Stefany at Nov 25, 2025, 03:57 AM

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Carin
3 months ago
I lean towards C. Budgeted profit is hard to surpass.
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Alethea
3 months ago
A makes sense. Higher C/S ratio boosts profit.
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Dorethea
3 months ago
D sounds interesting. Exact figures can be tricky.
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Miesha
3 months ago
I feel B could be true. Contribution might not rise that much.
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Carlene
3 months ago
Budgeted contribution was $30,000, so actual should be $33,000!
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Dulce
3 months ago
D seems too specific, I doubt that's the case.
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Helga
4 months ago
Wait, how can we be sure about the profit increase?
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Renay
4 months ago
I think A is the right answer. More profit for sure!
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Desirae
4 months ago
Option C makes the most sense to me. The higher C/S ratio means the actual contribution is less than 10% over budget.
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Xenia
5 months ago
Haha, this is like a trick question. I bet the accountants who wrote this are laughing at us right now.
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Shonda
5 months ago
Definitely C. The increased C/S ratio means the actual contribution is not a 10% increase over the budgeted amount.
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Aretha
5 months ago
I'm going with C. The higher C/S ratio means the actual contribution is not as much as 10% higher than budgeted.
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Kimberlie
5 months ago
Option C seems correct. The actual C/S ratio was 33% instead of the budgeted 30%, so the actual contribution would be less than 10% higher than budgeted.
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Josephine
5 months ago
I recall that if the actual C/S ratio is higher, it should lead to a higher contribution, but I can't remember how that translates to operating profit.
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Genevive
5 months ago
I'm a bit confused about the percentage increase. If the budgeted contribution was $30,000, how do I figure out if it's more or less than 10% higher?
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Graciela
6 months ago
I think I practiced a similar question where we had to compare actual and budgeted figures. If the C/S ratio increased, wouldn't that mean the contribution is higher?
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Cherry
6 months ago
I remember that the contribution margin affects the operating profit, but I'm not sure how to calculate the actual contribution based on the new C/S ratio.
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Simona
6 months ago
Alright, I've got a strategy. I'll first calculate the budgeted contribution and operating profit, then compare that to the actual figures based on the given information. That should help me determine which statement is correct.
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Wayne
6 months ago
Actual C/S was 33%, so contribution should be higher!
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Carmelina
6 months ago
I think A is correct. Higher C/S means more profit.
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Maia
6 months ago
I'm a bit confused by the wording of the question. I think I understand the concepts, but I want to double-check my work to make sure I'm not missing anything. This is an important exam, so I want to be sure I get it right.
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Gladis
7 months ago
C seems likely. Operating profit might not exceed 10%.
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Elena
7 months ago
Okay, let's see. The budgeted C/S ratio is 30%, and the actual C/S ratio is 33%. That's a good start, but I'll need to do some more math to determine the impact on contribution and operating profit.
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Christoper
7 months ago
Hmm, this seems like a tricky one. I'll need to carefully calculate the budgeted and actual contribution and operating profit to figure out which statement is correct.
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Evangelina
2 months ago
So, actual contribution is $3,000 more than budgeted.
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Christiane
2 months ago
That’s $30,000. Now for the actual contribution.
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Goldie
2 months ago
Right! Budgeted contribution is 30% of $100,000.
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Evangelina
2 months ago
I think we need to calculate the budgeted contribution first.
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Yuki
7 months ago
Actual contribution is 33% of $100,000, which is $33,000.
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