F9 revision notes

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    Having some doubt regrding the Working capital arithematic 2 in Revision Notes of OT..
    to calculate the holding cost the discount of 1% is used regardless of the order size.. Why dont we use the purchase price of that level of ordering the quantitiy?

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    John Moffat

    It is a typing mistake in the workings – sorry.

    If you calculate yourself the total holding costs you will find that the totals are correct in the answer and do take account of the higher discounts.

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