Yes, because as you will know if you have watched my lectures, at breakeven (which we need to calculate the margin of safety) the contribution has to be equal to the fixed costs!!!!
The questions says that Betta costs $1.50 per gram. Each cake costs $0.75 for Betta, therefore it must be using 0.75/1.50 = 0.5 grams of Betta. Same logic for Cookies and Shakes.
There are only 5,040 grams remaining to produce cakes. Since each cake uses 0.5 grams, it means that can produce 5,040/0.5 = 10,080 cakes.
Have you not watched my free lectures on key factor analysis?
HoPhucAn says
Hi, sir. Do you have lectures on sensitivity to change in sale volume and sale price?
Thankyou
John Moffat says
Watch the lectures on investment appraisal under uncertainty.
mohammed31071996 says
In 18:41 of the lecture, you wrote (980×0.15)+(1620×0.85)=1524. However, the correct calculation is (980×0.15)+(1612×0.85)=1517.20
mohammed31071996 says
In 29:10 of the lecture, you wrote contribution as $70, however that is the incremental fixed costs.
John Moffat says
Yes, because as you will know if you have watched my lectures, at breakeven (which we need to calculate the margin of safety) the contribution has to be equal to the fixed costs!!!!
mohammed31071996 says
oh yes, my bad!
John Moffat says
No problem 馃檪
melindap says
question 32 september 2016 in the optimum production plan cakes 10080 how to work it out. how their arrive at the grams 1,0.20 and 0.5
John Moffat says
The questions says that Betta costs $1.50 per gram.
Each cake costs $0.75 for Betta, therefore it must be using 0.75/1.50 = 0.5 grams of Betta.
Same logic for Cookies and Shakes.
There are only 5,040 grams remaining to produce cakes. Since each cake uses 0.5 grams, it means that can produce 5,040/0.5 = 10,080 cakes.
Have you not watched my free lectures on key factor analysis?
bismagul31 says
hello sir,can you please help me,from where the 100 units come ,i didn’t see in question .:o
lakshmisree175 says
Hi Sir… Thank you for all your lectures…. could we have lecture for section C it would be great help.
John Moffat says
I will do more when I have the time 馃檪
iyamu says
Sir will there be answers on 21- 25 or we just have to end on 1- 20?
Thank you.
John Moffat says
I have not recorded answers, but obviously there are printed answers on the ACCA website!
amna002 says
Its not there now! **heart break emoji**
THERESS ONLY 2 DAYS LEFT FOR THE EXAMM;(
John Moffat says
You should be able to find them by searching on Google.
iyamu says
Sir i think the supply will be 775 with an expected value of $1648,
John Moffat says
True – I miswrote. However my answer to the actual question is correct 馃檪
jonathanforstudying says
Hi Sir could we have the lectures for Qn 20-32? thank you 馃檪
jonathanforstudying says
Sorry it should be 21-32*
John Moffat says
When I have the time to record them.
jonathanforstudying says
Thank you sir!
jonathanforstudying says
馃檪
John Moffat says
You are welcome 馃檪
usamaamjad17 says
Hello, Have you not uploaded the rest?
John Moffat says
What rest?
You can see what has been uploaded.