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Exam P1 All Questions
Exam P1 All Questions

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CIMA Operational P1 Question # 2 Topic 1 Discussion

P1 Exam Topic 1 Question 2 Discussion:
Question #: 2
Topic #: 1

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.

P1 Question 2

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.


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