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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBL Exams › Q2.Jun 2014 iTTrain explanation
Could you please explain how the calculation of Contribution for each delegate group is calculated.
I am confused on why with 4 delegates the contribution is 28,000 and 4 delegates is 56,000. Is the MR per one doubles for every additional delegate?
All financial figures are in $
Number of delegates Contribution Fixed overheads Operating profit (loss)
3 0 65,000 (65,000)
4 28,000 65,000 (37,000)
5 56,000 65,000 (9,000)
6 84,000 65,000 19,000
7 112,000 65,000 47,000
8 140,000 65,000 75,000
9 168,000 65,000 103,000
Thanks in advance.
you will need to multiply contribution per course and the total planned.
700 x 40 with four delegates and continue the process for all delegate volume.
the net contribution per year is then reduced by fixed cost to achieve profit.