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CIMA Exam CIMAPRO19-P02-1 Topic 3 Question 85 Discussion

Actual exam question for CIMA's CIMAPRO19-P02-1 exam
Question #: 85
Topic #: 3
[All CIMAPRO19-P02-1 Questions]

Endure Co. makes 1,000 units ofX and 2,000 units of Y.

Costs for X: Material $4, labour $8, direct overhead $2, fixed cost $4.

Costs for Y: Material $9, labour $9, direct overhead $4, fixed cost $6.

Selling price for X and Y are S19 and $25 respectively. Another company can sell ready made product X and product Y's to Endure Co, this company sells X at $12 and Y at $21. Advise Endure Co. on what would be the

most cost effective way to source products X and Y.

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Suggested Answer: A

by Hollis at Apr 21, 2024, 03:59 PM

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Lavelle
6 months ago
I agree with User2, producing both X and Y themselves could help Endure Co. save on costs.
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Marylou
6 months ago
But wouldn't it be more cost effective in the long run if they produce both X and Y themselves?
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Micaela
6 months ago
I think it would be cheaper for Endure Co. to buy X and Y from the other supplier.
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Carman
7 months ago
I agree, the cost of producing both products seems lower than buying from the other supplier.
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Golda
7 months ago
But wouldn't it be cheaper for them to produce both X and Y themselves?
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Janey
7 months ago
I think Endure should buy X and Y from the other supplier.
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