CIMA Exam CIMAPRA17-BA2-1 Topic 2 Question 90 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam

Question #: 90
Topic #: 2

An organisation produces and sells a single product. The organisation's management accountant has reported the following information for the most recent period.

Which TWO of the following statements are valid? (Choose two.)

AIf the contribution to sales ratio changed to 30%, the breakeven point would become higher.

BIf the fixed cost changed to $445,000, the breakeven point would not change.

CIf the sales volume changed to 220,000 units, the breakeven point would not change.

DIf the selling price changed to $22 per unit, the breakeven point would become lower.

EIf the variable cost changed to $16 per unit, the breakeven point would become lower.

Show Suggested Answer

Suggested Answer: A, C

by Alton at Feb 12, 2025, 05:31 PM

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12 days ago

I think statement B is valid because fixed costs do not affect the breakeven point.

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