CIMA Exam CIMAPRO19-P02-1 Topic 6 Question 76 Discussion

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

Question #: 76
Topic #: 6

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.

AEndure should buy X and Yfrom the other supplier.

BEndure should buy X but produce Y themselves.

CEndure should produce both X and Y themselves.

DEndure should buy Y but produce X themselves.

Show Suggested Answer

Suggested Answer: A

by Bulah at Oct 22, 2023, 03:59 PM

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!