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CIMA Exam CIMAPRA17-BA2-1 Topic 4 Question 79 Discussion

Actual exam question for CIMA's CIMAPRA17-BA2-1 exam
Question #: 79
Topic #: 4
[All CIMAPRA17-BA2-1 Questions]

Refer to the exhibit.

ZAP publishes a monthly magazine aimed at the teenage market. It has drawn up a budget for next year as follows:

What selling price would be required for ZAP to break even?

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Suggested Answer: C

by Emmanuel at Sep 09, 2024, 04:16 PM

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Mari
1 months ago
Wait, ZAP is a magazine for teenagers? I bet the budget includes a line item for 'glitter and pineapple-scented ink' alone.
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Herminia
6 days ago
D) $0.80
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Rolland
9 days ago
C) $1.25
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Tegan
21 days ago
B) $1.20
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Frederica
25 days ago
A) $1.65
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Brendan
2 months ago
A) $1.65 is way too high. ZAP is targeting a teenage market, so they need to keep the price affordable.
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Pauline
18 days ago
D) $0.80 might be too low for ZAP to cover their costs and break even.
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Renato
24 days ago
C) $1.25 could also work, as long as it is not too high for the teenage market.
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Rosina
1 months ago
B) $1.20 seems like a reasonable selling price for ZAP to break even.
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Lavonne
2 months ago
D) $0.80 seems too low. Surely the magazine needs to at least cover its costs, and $0.80 per copy doesn't seem enough to do that.
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Marjory
10 days ago
D) $0.80 might be risky, but if they can sell a large volume, they could still break even.
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Annelle
27 days ago
C) $1.25 could be a good balance between covering costs and appealing to the target audience.
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Hermila
2 months ago
B) $1.20 might be too high for the teenage market. They might not be willing to pay that much.
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Alline
2 months ago
A) $1.65 seems like a more reasonable price to cover costs and make a profit.
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Lyla
2 months ago
I'm going with B) $1.20. The budget doesn't mention any profit margin, so the breakeven point should be the total cost divided by the number of units sold.
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Tiera
3 months ago
I think the correct answer is C) $1.25. The question states that ZAP needs to break even, so the selling price should cover the total costs of production and distribution.
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Alise
1 months ago
D) $0.80 is definitely too low for a break-even price.
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Lemuel
2 months ago
C) $1.25 makes sense, it covers the costs without making a profit.
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Edgar
2 months ago
I agree, B) $1.20 also seems too high.
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Glen
2 months ago
A) $1.65 seems too high for a break-even price.
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Carmela
3 months ago
But if you calculate the costs and revenue, it makes sense that the selling price should be higher to break even.
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Vashti
3 months ago
I disagree, I believe the correct answer is C) $1.25.
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Carmela
3 months ago
I think the answer is A) $1.65.
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