10 free CMA (IMA) practice questions in the real exam format, covering the official content areas, with an explanation for every answer.
CMA (IMA) Practice Test 5Tutor mode
Question 1 of 10
Business Decision Analysis
Ridgeway Castings can produce 50,000 valve housings a year and expects to sell 48,000 to regular customers at $60 each. Variable cost is $38 per unit, and fixed manufacturing overhead of $600,000 is applied at $12 per unit. A distributor offers to buy 3,000 housings at $45 each on an all-or-nothing basis. The order would add no fixed costs and would not affect regular prices, but Ridgeway would have to give up 1,000 regular sales. Accepting the order would change Ridgeway's operating income by