How to calculate all possible profit?

Home Forums ACCA Forum P5 Advanced Performance Management Forums How to calculate all possible profit?

This topic contains 2 replies, has 2 voices, and was last updated by Avatar of ddnguyen ddnguyen 2 years ago. This post has been viewed 106 times

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts

  • Avatar of ddnguyen
    ddnguyen
    Participant
    • Topics: 23
    • Replies: 50

    Can any body explain to me the example 1, part a of chapter 7 in course note P5 opentuition?

    i can’t not find the solution


    Avatar of angryhamtaro
    angryhamtaro
    Participant
    • Topics: 9
    • Replies: 162

    Hi @ddnguyen, I will try to explain to you in the simplest manner.

    For part (a), first build up a contribution/ profit matrix table made up of two factors – the first factor being the normal demand, and the second factor being the fixed customer’s contract size.

    Work up the profit figures by filling in all spaces. However, take note that your factory has a limited constraint of only producing 1,200 units. Since you are under a contract to supply a fixed number of units to your customer, you have to reduce the output for your normal demand. (ie. You can make 800 units for contracted customer, but only 300 units for normal demand).

    After you worked everything out, it should be easy for you to proceed ahead with the other questions.


    Avatar of ddnguyen
    ddnguyen
    Participant
    • Topics: 23
    • Replies: 50

    Thanks alot,

    i found it ok now…

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.