Exam IIA-CIA-Part3 Topic 7 Question 35 Discussion

Actual exam question for IIA's IIA-CIA-Part3 exam
Question #: 35
Topic #: 7
The company has learned that a new direct material is available that will increase the quality of its product. The new material will increase the direct materials costs by US $3 per unit. The company will increase the selling price of the product to US $50 per unit and increase its marketing costs by US $1.575.000 to advertise the higher-quality product. The number of units the company has to sell to earn a 1 O% before-tax return on sales is:

Suggested Answer: D Vote an answer

Pretax profit 10% of dollar sales) equals dollar sales unit sales US $50), minus total fixed costs increased by US $1,575,000 of marketing costs), minus total variable costs increased by US $3 per unit). Unit sales S) therefore equal 478.125 units.

by Luther at Oct 26, 2025, 07:06 AM

Limited Time Offer

15%

Off

Get Premium IIA-CIA-Part3 Questions as Interactive Self Test Engine or PDF

Comments

Chosen Answer:
This is a voting comment (?) , you can switch to a simple comment.
Switch to a voting comment New
Nick name: Submit Cancel
A voting comment increases the vote count for the chosen answer by one.

Upvoting a comment with a selected answer will also increase the vote count towards that answer by one. So if you see a comment that you already agree with, you can upvote it instead of posting a new comment.
0
0
0
10