CIMA BA2 Question Answer
A company operates a full cost system of pricing. Production overheads are absorbed using a pre-determined absorption rate of £3.50 per machine hour. The direct production cost of product A is £15 per unit and it utilises 6 machine hours per unit. The mark-up for non-production costs is 10% of total production cost. The company wants to make a 25% return on sales revenue for all products.
The required selling price for Product A, to two decimal places, is:
CIMA BA2 Summary
- Vendor: CIMA
- Product: BA2
- Update on: Jul 29, 2025
- Questions: 392
