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CIMA Exam CIMAPRO19-P02-1 Topic 1 Question 56 Discussion
Actual exam question for
CIMA's
CIMAPRO19-P02-1 exam
Question #: 56
Topic #: 1
[All CIMAPRO19-P02-1 Questions]
Topic #: 1
Oliver owns a computer repair company. He is looking to close of of his departments as the demand for computer cleaning has dropped dramatically in the last 2 years and is no longer profitable.
The contribution margin of the department is 12,000, and the overheads are 23,000 (out of which 4,000 cannot be eliminated).
How would closing this department impact operating income?
Suggested Answer:
A
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