Discuss CIMA CIMAPRO19-P02-1 Exam Topic 7 Question 23

One of an investment centre's products is sold on an external market. Output is limited because the specialist machine that manufactures the product is operating at full capacity.

Current data for the product are as follows.

Investigations have identified that more rigorous maintenance of the machine at an annual cost of $5,000 would reduce the number of breakdowns and increase its capacity to 1,300 units per year.

There would be no change in the selling price if more units were sold. Any additional labor hours would be paid a premium of 25%. A discount of 2% of the cost of all materials purchased is available if the company increases its purchases to 3,700 kg or more per year.

What would be the increase in the investment centre's annual controllable profit if more rigorous maintenance is undertaken?

A$21,400

B$17,800

C$23,900

D$26,160

Suggested Answer: A

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9 comments · newest first

Carin 12 months ago

I agree, but the labor costs could eat into those profits.

Elizabeth 1 year ago

Definitely going for option C!

Eve 1 year ago

Wait, how does $5,000 in maintenance lead to that much profit?

Matthew 1 year ago

I think the profit increase is way higher than that.

Iesha 1 year ago

Sounds like maintenance is key to boosting output!

Rikki 1 year ago

I think the answer is C - reduced message sizes. Symmetric cryptography is generally faster and more efficient than asymmetric, so it should result in smaller message sizes.

Emiko 1 year ago

This question seems straightforward, but I want to make sure I understand the key terms like "AWDM WDM module" and "Odn" before answering.

Gertude 1 year ago

I think the answer is D. Validation rule. That's the best way to define rules for the table's columns to prevent invalid data entry.

Fredric 1 year ago

I'm a little confused by all the Cisco-specific terminology here. I'll need to make sure I understand the differences between all these services and policies before I can confidently select the right two options.

CIMAPRO19-P02-1 Exam - Topic 7 Question 23 Discussion