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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Forecasting question
An organisation’s total weekly cost (in $000) is represented by the following expression :
550 + 2.8Q
Where Q represents the weekly quantity produced and sold in thousands of units.
Last week 150,000 units were produced and sold
What was the total cost last week ?
A. $420550
B. $550420
C. $592000
D. $970000
For this question I’ve got 420550 as answer but the answer is actually D. $970000
How is it so?
You have not read the question carefully enough.
The question says that Q is the quantity in thousands of units.
Therefore Q is 150 (not 150,000) in the equation.
550 + 2.8 x 150 = 970 and the question says that this is the total cost in $000, so is 970,000.
Oh I see, thanks a lot sir, I will be more careful
You are welcome 🙂