june 2011 no.1 (decision making under condition of uncertainty)

Home Forums ACCA Forum F5 Performance Management Forums june 2011 no.1 (decision making under condition of uncertainty)

This topic contains 3 replies, has 3 voices, and was last updated by Avatar of admin admin 1 year, 8 months ago. This post has been viewed 158 times

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts

  • avatar
    samanthasteinier
    Participant
    • Topics: 4
    • Replies: 3

    1 Cement Co(answer)
    (a) Pay off table
    no ogf bags
    $350000 $280000 $200000
    WEATHER
    good ($000) $1750 1400
    average $1085 1400
    poor $325 640

    (1) 350,000 x $5 = $1,750,000
    (2) [280,000 x $5] – [70,000 x $(4·50)] = $1,085,000 etc

    HOW IS $1400 OBTAINED?????????


    avatar
    forhad
    Participant
    • Topics: 1
    • Replies: 24

    Profit=$9-$4=$5 per bag.
    In case of disposal,
    Loss=$4+$0.50=$4.50 per bag.

    If DEMAND is GOOD(350,000), but SUPPLY is 280,000
    Profit=280,000*$5=$1,400,000

    If DEMAND is AVERAGE(280,000), and SUPPLY is 280,000
    Profit=280,000*$5=$1,400,000

    If DEMAND is POOR(200,000), but SUPPLY is 280,000
    Profit=(200,000*$5)-(80,000*$4.50)=$640,000

    Hope, u r ok now.


    avatar
    samanthasteinier
    Participant
    • Topics: 4
    • Replies: 3

    ah ok thanks a lot.i was not understanding the 9 possibilities obtained.the question seems to be quite confusing.


    Avatar of admin
    admin
    Participant
    • Topics: 246
    • Replies: 758
Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic.