CIMA-P1 Web TestEngine demo

Exit VCEDump CIMA-P1 P1 - Management Accounting
Question 28 of 42
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Q28 Fill in the blank

CORRECT TEXT

Company XPP sells a perishable product that has to be produced each day in anticipation of the following day's sales.

Any product remaining unsold at the end of the day following production is wasted.

The payoff table below shows the daily profit or loss depending on the amounts produced and sold.

Question 28 diagram

A new ordering system is being discussed with customers.

The new system would require customers to order in advance to enable production each day of the
following day's sales quantity, thus eliminating waste.

What is the expected increase in average daily profit if the new system is accepted by customers?

Give your answer as a whole number.

Type the exact answer. Case-insensitive, extra spaces ignored.

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