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CIMAPRO19-P02-1 Exam - Topic 8 Question 48 Discussion

A company expects to sell 3,600 units of Product A at a selling price of $750 per unit during the forthcoming year. The currently expected variable cost per unit is $860 per unit. The company requires a return of 15% during the forthcoming year on its investment of $2.4 million in Product
A) Absorbed general overheads are expected to amount to $40 per unit. What is the target cost for each unit of product A in the forthcoming year? and A) $650
B) $250
C) $900
D) $850

CIMAPRO19-P02-1 Exam - Topic 8 Question 48 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 48
Topic #: 8
[All CIMAPRO19-P02-1 Questions]

A company expects to sell 3,600 units of Product A at a selling price of $750 per unit during the forthcoming year. The currently expected variable cost per unit is $860 per unit. The company requires a return of 15% during the forthcoming year on its investment of $2.4 million in Product

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Suggested Answer: A, A

by Pete at May 09, 2022, 04:22 AM

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Ling
10 months ago
$650 makes sense, but I wonder if they factored in all costs properly.
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Fernanda
10 months ago
I’m not convinced, seems like they’re setting themselves up for a loss.
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Norah
11 months ago
Wait, how can the variable cost be higher than the selling price?
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Thad
11 months ago
Totally agree, that's the right calculation!
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Cyril
11 months ago
Target cost should be $650 based on the numbers.
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Sueann
11 months ago
This question seems straightforward. The Calico CNI plug-in is the one that provides the intent-based networking capabilities described in the prompt.
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Francoise
11 months ago
Okay, let me think this through step-by-step. I know Salesforce B2B Commerce uses Backbone.js, so I'll focus on the CCRZ.pubSub event channel and the trigger, on, and once functions. That should give me a good starting point.
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Dottie
11 months ago
Hmm, I'm not sure about this one. I'm thinking maybe arp or ping could also work, but I'll have to think it through a bit more.
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