CIMA Exam CIMAPRO19-P01-1 Topic 3 Question 83 Discussion

Actual exam question for CIMA's CIMAPRO19-P01-1 exam

Question #: 83
Topic #: 3

A company's budget for the next period shows that it would breakeven at sales revenue of $800,000 and fixed costs of $320,000.

The sales revenue needed to achieve a profit of $200,000 in the next period would be:

A$1,950,000

B$1,780,000

C$1,400,000

D$1,300,000

E$1,390,000

Show Suggested Answer

Suggested Answer: D

References:

by Laticia at Mar 21, 2024, 05:24 AM

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Francine

8 months ago

Good point, Bulah. That makes sense. C) $1,400,000 seems like the right answer.

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Bulah

8 months ago

So, the total sales revenue needed would be $800,000 (breakeven) + $200,000 (profit) = $1,000,000. Then, add the fixed costs. The answer should be C) $1,400,000.

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Annita

8 months ago

You're right, Bulah. We have to add the breakeven sales revenue of $800,000 to the profit we want.

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Bulah

8 months ago

But what about the breakeven point? Shouldn't we consider that too?

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Francine

8 months ago

I agree with Annita. To get a profit of $200,000, we need to cover the fixed costs first.

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Annita

8 months ago

I think the answer is A) $1,950,000.

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Pearlie

8 months ago

I think the answer is D) $1,300,000. It just feels right to me.

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Cordelia

9 months ago

I'm leaning towards C) $1,400,000. It seems to make more sense to me.

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Weldon

9 months ago

I disagree. I believe the answer is B) $1,780,000.

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Devorah

10 months ago

I think the answer is A) $1,950,000.

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