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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?

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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

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Elise
8 days 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!
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Francoise
9 days ago
I'm not sure about this. Maybe we should calculate the breakeven point to be sure.
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Laurene
11 days 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.
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Sang
14 days ago
I think the answer is B) 133,333.
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