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A company generates and distributes electricity and gas to households and businesses.

A company generates and distributes electricity and gas to households and businesses. 

 

Forecast results for the next financial year are as follows:

  

The Industry Regulator has announced a new price cap of $1.50 per Kilowatt. 

The company expects this to cause consumption to rise by 10% but costs would remained unaltered. 

 

The price cap is expected to cause the company's net profit to fall to:

A.

$47.5 million profit

B.

$27.5 million profit

C.

$20.0 million profit

D.

$35.0 million loss

CIMA F3 Summary

  • Vendor: CIMA
  • Product: F3
  • Update on: Dec 22, 2025
  • Questions: 393
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