P1 help!!
Hoping someone can clarify the expected rounding approach for CIMA/P1 style pricing questions because I’m getting confused by what seems to be inconsistent logic between two questions.
In one question, I calculated a selling price of $84.874 and rounded mathematically to $84.87, but this was marked incorrect because rounding down meant the required target profit would not quite be achieved. The correct answer was $84.88 instead.
However, in another question I calculated a target cost of about $12.545. Rounding this up to $12.55 meant the required return would NOT be achieved, whereas rounding down to $12.54 would achieve the target return more accurately. Despite this, the correct answer was still given as $12.55.
So my question is:
In the exam, should we:
- always round mathematically to the nearest cent/penny regardless of the impact on the target profit/return, OR
- round in whichever direction ensures the target is achieved?
I’m sitting my exam tomorrow so would really appreciate any guidance from anyone who’s encountered this before!