1. Home
  2. Discussions
  3. CIMA
  4. CIMA Operational
  5. P1 Discussions
  6. P1 Exam Topic 8 Question 74 Discussion

CIMA Management Accounting P1 Question # 74 Topic 8 Discussion

 CIMA Discussions      Browse All Questions      Go to Exam Detail      Get Premium Access
 Previous
Next  

CIMA Management Accounting P1 Question # 74 Topic 8 Discussion

P1 Exam Topic 8 Question 74 Discussion:
Question #: 74
Topic #: 8

JRL manufactures two products from different combinations of the same resources. Unit selling prices and unit cost details for each product are as follows:

P1 Question 74

The optimal solution in the previous question shows that the shadow prices of skilled labour and direct material A are as follows:

Skilled labour $ Nil

Direct material A $11.70

Explain the relevance of these values to the management of JRL.

What is the additional contribution that can be earned?
A.

Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $4, 825

B.

Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $5, 825

C.

Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $3, 825

D.

Thus the additional contribution that can be earned and therefore the penalty value at which WRX would decide not to supply the major customer order in full is $4, 570

Get Premium P1 Questions
Actual exam question for CIMA P1 exam by Xander8864 at Aug 3, 2025, 12:00:00 AM

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.

Submit
 Previous
Next