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Exam P1 Topic 5 Question 15 Discussion

Actual exam question for CIMA's P1 exam
Question #: 15
Topic #: 5
A company manufactures a range of products. It is deciding whether to make one of its products internally or to buy the product partially completed from an external source and complete the manufacture in-house. The table below gives details of the variable costs of the two alternatives. Fixed production costs will remain the same under both alternative.

What is the sensitivity of the decision to a change in the external purchase price?
Give your answer as a whole percentage.

Suggested Answer:

10%

by Beatrice at Mar 26, 2026, 12:42 AM

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