# CMA Study Group

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• #### 1.  CMA part 2 - cvp

Posted 10-19-2020 06:14 AM

why did she use Weighted average selling price in her calculation.?

Fact Pattern:  Catfur Company has fixed costs of \$300,000. It produces two products, X and Y. Product X has a variable cost percentage equal to 60% of its \$10 per unit selling price. Product Y has a variable cost percentage equal to 70% of its \$30 selling price. For the past several years, unit sales of Product X were 40% of total unit sales. That ratio is not expected to change.

Question: 25 Assume that Catfur Company achieved its planned breakeven level of sales in dollars, but the mix of products sold was one-to-one. All actual costs and unit selling prices equaled budgeted amounts. What is the impact on profitability?
 A. The company earned a profit. Answer (A) is correct.The expected sales mix is 40% for Product X and 60% for Product Y. Weighted-average UCM equals \$7 {[\$10 – (\$10 × 60%)] × 40%} + {[\$30 – (\$30 × 70%)] × 60%}. Weighted-average selling price equals \$22 [(\$10 × 40%) + (\$30 × 60%)]. The weighted-average CMR therefore equals 0.3181818 (\$7 ÷ \$22), and the breakeven point in sales dollars equals \$942,857 (\$300,000 ÷ 0.3181818). If actual sales were 50% Product X and 50% Product Y, weighted-average UCM would equal \$6.50 {[\$10 – (\$10 × 60%)] × 50%} + {[\$30 – (\$30 × 70%)] × 50%}. Weighted-average selling price would equal \$20 [(\$10 × 50%) + (\$30 × 50%)]. The weighted-average CMR would therefore equal 0.325 (\$6.50 ÷ \$20), and the breakeven point in sales dollars would equal \$923,077 (\$300,000 ÷ 0.325). Given that sales reached the budgeted breakeven point of \$942,857, Catfur must have made a profit of \$19,780 (\$942,857 – \$923,077). B. Cannot be determined from the information given. C. The company sustained a loss. D. The company is operating at the breakeven point.

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Tayba Al-Mehdar
Analyst
Khobar
Saudi Arabia
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• #### 2.  RE: CMA part 2 - cvp

Posted 10-20-2020 07:50 AM
Hi Tabya,

For multiple products, the weighted average Selling price would be used.

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Sanjana
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• #### 3.  RE: CMA part 2 - cvp

Posted 09-05-2023 03:02 PM

Question: 19 A company sells two products with the following results for the year just ended.
Product 1 Product 2
Sales \$12,000,000 \$3,000,000
Variable costs 4,800,000 1,500,000
Fixed costs 5,400,000 400,000
Assuming the product mix and the sales mix remain the same, the company's
breakeven point in sales dollars is
A. \$12,100,000
B. \$13,810,000
C. \$10,000,000
D. \$9,800,00

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Govind Jha
Accountant
Ulhasnagar 3 MH
India
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• #### 4.  RE: CMA part 2 - cvp

Posted 10-27-2023 06:09 AM

Dear Hi freinds,

Can anyone share Cma Part 2 materials/test bank.. Im doing self study. Will be highly appreciated if you can help.

My email I'd : shanikaruvan@...