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CIMA Professional Gateway Assessment SAMPLE PAPER …

cima Professional Gateway Assessment SAMPLE PAPER Examiner s Answers SECTION A Answer to Question 1- From P2 Syllabus (a) Product/Component P4 P6 C3 C5 $/unit $/unit $/unit $/unit Selling Price/ Opportunity Cost 125 175 75 95 Variable Cost 55 75 44 45 Contribution 70 100 31 50 M1(q. meters/unit) Contribution/sq. metre Rank 4th 1st 2nd 3rd Make (units) 1,500 500 250 Uses (Sq meters) 750 125 125 The company should also consider: the effect on sales of P6; buying 750 units of C5 if the final product still has a positive contribution after all of the costs of the bought in components have been considered; the likelihood of the price of material M1 remaining at $20 per square metre; carrying out sensitivity analysis to evaluate the impact of changes in price; the validity of the fixed costs assumption that fixed costs will not alter.

CIMA Professional Gateway Assessment SAMPLE PAPER Examiner’s Answers SECTION A Answer to Question 1- From P2 Syllabus (a) Product/Component P4 P6 C3 C5

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