Financial Certified Management Accountant CMA Exam Questions in PDF

Free Financial CMA Dumps Questions (page: 35)


Details: Marginal Analysis 15

Gleason Co. has two products, a frozen dessert and ready-to-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present. Therefore, Gleason has conducted a market study, at a cost of $26000, to determine which product will be more profitable. The results of the study follow.


*Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset.
According to Gleason's market study, the expected value of the sales volume of the breakfast rolls is

  1. 125,000 units.
  2. 260,000 units.
  3. 275,000 units.
  4. Some amount other than those given.

Answer(s): B

Explanation:

The expected value is found by multiplying the probability of each possibility by the potential volumes:




Details: Marginal Analysis 15

Gleason Co. has two products, a frozen dessert and ready4o-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present. Therefore, Gleason has conducted a market study, at a cost of $26000, to determine which product will be more profitable. The results of the study follow.


*Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset.
Applying a deterministic approach, Gleason's revenue from sales of frozen desserts would be

  1. $549,000
  2. $540,000
  3. $216,000
  4. Some amount other than those given.

Answer(s): B

Explanation:

The word deterministic is used to characterize processes that are not probabilistic. Such an approach uses the most likely value. In this case, sales of desserts would most likely be 300,000 units. At $1.80 each1 total revenue would be $540,000.




Details: Marginal Analysis 15

Gleason Co. has two products, a frozen dessert and ready-to-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present. Therefore, Gleason has conducted a market study, at a cost of $26,000, to determine which product will be more profitable. The results of the study follow.


*Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset.
The expected value of Gleason's operating profit directly traceable to the sale of frozen desserts is

  1. $198,250
  2. $150,250
  3. $120,250
  4. Some amount other than those given.

Answer(s): C

Explanation:

The expected volume for sales of frozen desserts is 305,000 [(250000 x .30) + (300000 x
40) + (350,000 x .20) + (400 .000 x .10)]. At $1 .80 each1 the total revenue from 305,000 units would be $549,000. Variable costs would total $1.15 each ($40 + $35 + $40), or $350750 for 305.000 units. Fixed costs total $78,000 ($48,000 + $30000). Thus, operating profit would be $120,250 ($549,000 --$350,750-- $78,000).




Details: Marginal Analysis 15

Gleason Co. has two products, a frozen dessert and ready-to-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present. Therefore, Gleason has conducted a market study, at a cost of $26,000, to determine which product will be more profitable. The results of the study follow.


Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset.In order to recover the costs of production tooling and advertising for the breakfast rolls, Gleason's sales of the breakfast rolls would have to be

  1. 37500 units.
  2. 100,000 units.
  3. 60,000 units.
  4. Some amount other than those given.

Answer(s): B

Explanation:

Fixed costs of $45,000 ($25,000 + $20,000) should be divided by the unit contribution margin of $45 ($1 .20 selling price -- $.25 -- $30 -- $.20). The unit breakeven point is therefore 100,000 units ($45,000 ÷ $45).




Details: Marginal Analysis 15

Gleason Co. has two products, a frozen dessert and ready-to-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present. Therefore, Gleason has conducted a market study, at a cost of $26,000, to determine which product will be more profitable. The results of the study follow.


*Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset.
The cost incurred by Gleason for the market study is a(n)

  1. Incremental cost.
  2. Prime cost.
  3. Opportunity cost.
  4. Sunk cost.

Answer(s): D

Explanation:

A sunk cost is a previously incurred cost that is the result of a past irrevocable management decision. Nothing can be done in the future about sunk costs. The market study cost is an example.



Share your comments for Financial CMA exam with other users:

M
Miguel
10/16/2023 11:18:00 AM

question 5, it seems a instead of d, because: - care plan = case - patient = person account - product = product2;

B
Byset
9/25/2023 12:49:00 AM

it look like real one

D
Debabrata Das
8/28/2023 8:42:00 AM

i am taking oracle fcc certification test next two days, pls share question dumps

N
nITA KALE
8/22/2023 1:57:00 AM

i need dumps

C
CV
9/9/2023 1:54:00 PM

its time to comptia sec+

S
SkepticReader
8/1/2023 8:51:00 AM

question 35 has an answer for a different question. i believe the answer is "a" because it shut off the firewall. "0" in registry data means that its false (aka off).

N
Nabin
10/16/2023 4:58:00 AM

helpful content

B
Blessious Phiri
8/15/2023 3:19:00 PM

oracle 19c is complex db

S
Sreenivas
10/24/2023 12:59:00 AM

helpful for practice

L
Liz
9/11/2022 11:27:00 PM

support team is fast and deeply knowledgeable. i appreciate that a lot.

N
Namrata
7/15/2023 2:22:00 AM

helpful questions

L
lipsa
11/8/2023 12:54:00 PM

thanks for question

E
Eli
6/18/2023 11:27:00 PM

the software is provided for free so this is a big change. all other sites are charging for that. also that fucking examtopic site that says free is not free at all. you are hit with a pay-wall.

O
open2exam
10/29/2023 1:14:00 PM

i need exam questions nca 6.5 any help please ?

G
Gerald
9/11/2023 12:22:00 PM

just took the comptia cybersecurity analyst (cysa+) - wished id seeing this before my exam

R
ryo
9/10/2023 2:27:00 PM

very helpful

J
Jamshed
6/20/2023 4:32:00 AM

i need this exam

R
Roberto Capra
6/14/2023 12:04:00 PM

nice questions... are these questions the same of the exam?

S
Synt
5/23/2023 9:33:00 PM

need to view

V
Vey
5/27/2023 12:06:00 AM

highly appreciate for your sharing.

T
Tshepang
8/18/2023 4:41:00 AM

kindly share this dump. thank you

J
Jay
9/26/2023 8:00:00 AM

link plz for download

L
Leo
10/30/2023 1:11:00 PM

data quality oecd

B
Blessious Phiri
8/13/2023 9:35:00 AM

rman is one good recovery technology

D
DiligentSam
9/30/2023 10:26:00 AM

need it thx

V
Vani
8/10/2023 8:11:00 PM

good questions

F
Fares
9/11/2023 5:00:00 AM

good one nice revision

L
Lingaraj
10/26/2023 1:27:00 AM

i love this thank you i need

M
Muhammad Rawish Siddiqui
12/5/2023 12:38:00 PM

question # 142: data governance is not one of the deliverables in the document and content management context diagram.

A
al
6/7/2023 10:25:00 AM

most answers not correct here

B
Bano
1/19/2024 2:29:00 AM

what % of questions do we get in the real exam?

O
Oliviajames
10/25/2023 5:31:00 AM

i just want to tell you. i took my microsoft az-104 exam and passed it. your program was awesome. i especially liked your detailed questions and answers and practice tests that made me well-prepared for the exam. thanks to this website!!!

D
Divya
8/27/2023 12:31:00 PM

all the best

K
KY
1/1/2024 11:01:00 PM

very usefull document

AI Tutor 👋 I’m here to help!