Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions
Mail Us support@pass4success.com
Location US
Mob_nav_barsMENU

CIPS Exam L3M3 Topic 2 Question 29 Discussion

Actual exam question for CIPS's L3M3 exam
Question #: 29
Topic #: 2
[All L3M3 Questions]

The variable cost of a bottle of water is 25 cents. Selling price is $1, and fixed costs are one hundred thousand dollars. How many bottles of water must be sold to reach breakeven point?

Show Suggested Answer Hide Answer
Suggested Answer: D

Inability to touch something.

Services are intangible, which may present challenges when specifying / buying.


by Cyndy at Jan 25, 2025, 08:26 AM

Limited Time Offer

25%

Off

Get Premium L3M3 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel
Cyndy
4 months ago
This question is as clear as a bottle of Evian. I'm just going to go with 'D' and hope the Water Lords are on my side today.
upvoted 0 times
Rose
2 months ago
I agree with you, D) 13,333 seems like the right choice.
upvoted 0 times
...
Elza
2 months ago
I'm going with C) 400,000.
upvoted 0 times
...
Fabiola
2 months ago
I think the answer is B) 133,333.
upvoted 0 times
...
...
Alberto
4 months ago
Alright, time to put on my business cap. Okay, so we need to cover the fixed costs of $100,000, and the contribution margin per bottle is 75 cents. Divide the fixed costs by the contribution margin, and voila - 'B' is the correct answer!
upvoted 0 times
Ty
3 months ago
Alright, time to put on my business cap. Okay, so we need to cover the fixed costs of $100,000, and the contribution margin per bottle is 75 cents. Divide the fixed costs by the contribution margin, and voila - 'B' is the correct answer!
upvoted 0 times
...
Theresia
3 months ago
D) 13,333
upvoted 0 times
...
Garry
3 months ago
C) 400,000
upvoted 0 times
...
Pamela
3 months ago
B) 133,333
upvoted 0 times
...
Gilberto
4 months ago
A) 4 million
upvoted 0 times
...
...
Norah
4 months ago
Hmm, let me think this through. The variable cost is 25 cents, the selling price is $1, and the fixed costs are $100,000. Yep, the answer is 'B' - 133,333 bottles. I've got this in the bag!
upvoted 0 times
Peggie
3 months ago
Hmm, let me think this through. The variable cost is 25 cents, the selling price is $1, and the fixed costs are $100,000. Yep, the answer is 'B' - 133,333 bottles. I've got this in the bag!
upvoted 0 times
...
Gail
3 months ago
D) 13,333
upvoted 0 times
...
Hassie
3 months ago
C) 400,000
upvoted 0 times
...
Kyoko
3 months ago
B) 133,333
upvoted 0 times
...
Kaycee
3 months ago
A) 4 million
upvoted 0 times
...
...
Ashlee
4 months ago
Wait, wait, wait... 4 million bottles? This must be a trick question. I'm pretty sure the answer is 'D' - 13,333 bottles to break even. If I'm wrong, I'll just drown my sorrows in a bottle of water.
upvoted 0 times
Graciela
2 months ago
Great, we all seem to be on the same page then. 'D' it is!
upvoted 0 times
...
Felix
2 months ago
I'm going with 'D' as well. It just makes more sense.
upvoted 0 times
...
Sherron
3 months ago
Yeah, I agree. 13,333 bottles sounds more reasonable than 4 million.
upvoted 0 times
...
Crissy
4 months ago
I think you're right, 'D' seems like the correct answer.
upvoted 0 times
...
...
Elise
5 months ago
Ah, the old breakeven point calculation. Let's see, if the variable cost is 25 cents and the selling price is $1, we need to cover the fixed costs of $100,000, so the answer must be 133,333 bottles. Easy peasy!
upvoted 0 times
Salley
3 months ago
Exactly, it's a simple calculation to find the breakeven point.
upvoted 0 times
...
Cordelia
3 months ago
So, we just divide the fixed costs by the contribution margin per unit.
upvoted 0 times
...
Marjory
3 months ago
That's correct, we need to cover the fixed costs of $100,000.
upvoted 0 times
...
Venita
4 months ago
I think the answer is 133,333 bottles.
upvoted 0 times
...
...
Francoise
5 months ago
I'm not sure about this. Maybe we should calculate the breakeven point to be sure.
upvoted 0 times
...
Laurene
5 months ago
I agree with Sang. The fixed costs are high, so it makes sense that we need to sell a significant number of bottles to break even.
upvoted 0 times
...
Sang
5 months ago
I think the answer is B) 133,333.
upvoted 0 times
...

Save Cancel