• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

ques

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › ques

  • This topic has 4 replies, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • August 7, 2016 at 9:08 pm #331869
    firelion28
    Member
    • Topics: 159
    • Replies: 83
    • ☆☆☆

    For a product that has a positive unit contribution, which of the following events would tend to increase total conttribution by the greatest amount?

    I am conufued between these two answers-
    A 10% increase in selling price
    B 10% decrease in variable cost

    Other choices-
    C 10% increase in volume sold
    D 15% decrease in total fixed costs

    August 8, 2016 at 8:52 am #331919
    firelion28
    Member
    • Topics: 159
    • Replies: 83
    • ☆☆☆

    Sir, please reply

    August 8, 2016 at 9:16 am #331935
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    We aim to answer within 24 hours – so pushing for a reply will not make it come any faster! I do not sit at the computer 20 hours a day (and I am on a different time zone than you and do need to sleep!).

    Is there not an answer in the same book in which you found the question? (If not then you should be using a Revision Kit from one of the ACCA approved publishers).

    Firstly, D can obviously not be the answer because contribution would not be affected at all. Which leaves the choice between A, B and C.
    The best way to approach this sort of question is to make up some quick figures.
    For example, suppose the selling price is 100 and the variable costs are 60, and therefore the contribution is 40.
    Now see what happens under each of the three choices, and then you will have your answer 🙂

    August 9, 2016 at 12:34 pm #332192
    firelion28
    Member
    • Topics: 159
    • Replies: 83
    • ☆☆☆

    Sir, what how will be make figures for volume sold

    August 9, 2016 at 3:15 pm #332223
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54700
    • ☆☆☆☆☆

    If the volume increases by 10% then the revenue and variable costs both increase by 10% and therefore the contribution increases by 10%

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • osman-the-zephyr@ on MA Chapter 1 Questions Accounting for Management
  • adebusola on MA Chapter 1 Questions Accounting for Management
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • Sharith on Interest rate risk management (1) Part 5 – ACCA (AFM) lectures
  • John Moffat on Discounted Cash Flow Further Aspects, Replacement – ACCA Financial Management (FM)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in