IMANET CMA Exam - Topic 12 Question 125 Discussion

Actual exam question for IMANET's CMA exam

Question #: 125
Topic #: 12

[All CMA Questions]

A manufacturer can sell its single product for $660.Below are the cost data for the product:

Direct Materials $170

Direct Labor 225

Manufacturing Overhead 90

The relevant margin amount when beginning a theory of constrains (TOC) analysis is

A$490

B$345

C$265

D$175

Show Suggested Answer

Suggested Answer: A

A theory of constraints (TOC) analysis proceeds from the assumption that only direct materials costs are truly variable in the short run. This is Called throughput .or super variable, costing The relevant margin amount is throughput margin, Which equals price minus direct materials. Thus, the relevant margin amount for this manufacturer is $490 ($660-$170).

by Effie at May 03, 2026, 01:17 AM

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Elina

5 hours ago

I think the relevant margin is $175.

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Vincenza

5 days ago

Direct costs total $485.

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Iola

11 days ago

The selling price is $660.

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Lorrine

16 days ago

I think the answer is $345, which is the selling price minus direct materials and direct labor. That seems to fit the TOC approach, right?

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Mozell

2 months ago

I feel like the manufacturing overhead might not be relevant for this calculation, but I can't remember if we should include it in the total costs.

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Erick

2 months ago

I remember a similar question where we had to find the contribution margin. If I recall correctly, it was selling price minus variable costs.

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Tasia

2 months ago

I think the relevant margin is calculated by subtracting the total variable costs from the selling price, but I'm not entirely sure how to apply that here.

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