- This topic has 3 replies, 2 voices, and was last updated 7 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘June'15 . Question 1. yilandwe.’ is closed to new replies.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › June'15 . Question 1. yilandwe.
i couldn’t understand from where comes contribution earned by imoni co. 120$ .
when it is written in question it is 40$ per component .
plus i have another problem in calculating redundancy and lost contribution .
i couldn’t understand from where it comes .1$ million. kindly please explain . thanks
The current contribution is $40, which means that the cost to Imoni is 200 – 40 = 160.
They are going to increase the price charged to 280 and so in future they will get a contribution of 280 – 160 = 120.
The $0.1M is the present value of the redundancy and lost contribution figures that are given in the question.