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Hello
could you please help me on this question – past paper -DEC-2008
to prepare a profit table showing the 6 possible profit figures per period
the capacity is 100 for small van ,150 medium , and 200 for large
Demand for crates varies and can be either 120 190 per period with the probability of the higher demand figure being 0.6the sale price is 10$ and variable cost $4 per crate
goodwill of 100 to be charged against profits per period
depreciation charge 200$ for the small 300$ for the medium 400$largeI dont know how they worked out the sales
1 2 3 4 5 6
1000 1000 1200 1500 1200 1900Thanks in advance
If u look at the capacity levels of the vans and the demand of 120 and 190 its fairly simple. The selling price is $10 so for the small van with a capacity of 100 although we aan sell 120 and 190 the van can only fit 100 so multiply this by $10 its 100 for each demand.
Medium van can hold 150 so as demand is only 120 times by $10is 1200, although demand is 190 the van can only cater for 150 times by 10 is 1500.Does that make sense?
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