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Exam P2 Topic 2 Question 26 Discussion

Actual exam question for CIMA's P2 exam
Question #: 26
Topic #: 2
One of an investment centre's products is sold on an external market. Output is limited because the specialist machine that manufactures the product is operating at full capacity.
Current data for the product are as follows.

Investigations have identified that more rigorous maintenance of the machine at an annual cost of
$5,000 would reduce the number of breakdowns and increase its capacity to 1,300 units per year.
There would be no change in the selling price if more units were sold. Any additional labor hours would be paid a premium of 25%. A discount of 2% of the cost of all materials purchased is available if the company increases its purchases to 3,700 kg or more per year.
What would be the increase in the investment centre's annual controllable profit if more rigorous maintenance is undertaken?

Suggested Answer: D Vote an answer

by Hilary at Apr 02, 2026, 01:44 AM

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Here are all the actual test exam dumps for IT exams. Most people prepare for the actual exams with our test dumps to pass their exams. So it's critical to choose and actual test pdf to succeed.

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