CIMA Exam CIMAPRO19-P02-1 Topic 1 Question 56 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam

Question #: 56
Topic #: 1

Oliver owns a computer repair company. He is looking to close of of his departments as the demand for computer cleaning has dropped dramatically in the last 2 years and is no longer profitable.

The contribution margin of the department is 12,000, and the overheads are 23,000 (out of which 4,000 cannot be eliminated).

How would closing this department impact operating income?

AIncrease operating income by 7,000

BDecrease operating income by 7,000

CDecrease operating income by 12,000

DIncrease operating income by 12,000

Show Suggested Answer

Suggested Answer: A

by Malcolm at Aug 02, 2022, 04:29 AM

Limited Time Offer

25%

Off

Get Premium CIMAPRO19-P02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Currently there are no comments in this discussion, be the first to comment!