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June 15 Merkland Sportswear

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › June 15 Merkland Sportswear

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  • July 11, 2019 at 2:48 am #522459
    zkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Hi sir,

    Part ii

    The answer is

    Extra units needed to cover that loss = 5.5/5199 = 105,973

    1) What is the formula used here (which item divide by which item.)

    2) how to arrive to 5199 figure

    Thank u so much

    July 11, 2019 at 11:03 am #522575
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10609
    • ☆☆☆☆☆

    New contribution = 75 – 21 x 1.1 = 51.9

    The loss of operating profit (in answer workings) 5,500,000. This has to be recouped by selling more units, each making 51.9 contribution.

    Extra volume needed is therefore: 5,500,000/ 51.9 = 105,973.

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