Free CIMA Mock Exam Question from Friday 15th

Today we have a question relating to the new 2019 syllabus for P1.

The question was:

Calculate the total profit under a Marginal Costing system for the following:

Selling Price £65 unit
Variable Costs £40 unit
Fixed Costs £12,600
Predicated Sales 650 units
Production 700 unit

This question relates to ‘A: Cost Accounting for Decision and Control’ and is a slightly different version of the question in one of our free mock exams.

The correct answer was…


Under Marginal Costing we can ignore the extra production creating closing stock you should:

Contribution per unit = £65 – £40 = £25 per unit
Total Contribution x Sales volume = £25 x 650 = £16,250
Profit – Fixed Costs = £16,250 – £12,600 = £3,650

For more free questions use our Free CIMA Mock Exams for the 2019 syllabus use the menu above to access our little shop, at the same time you’ll have the option to upgrade to our + package which includes 50% more CIMA Mock Exam style questions, feedback and both revision and timed assessment modes plus much more.

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