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Forums › ACCA Forums › ACCA PM Performance Management Forums › An error in the solution for Q31 Envico from RK BPP for 2011
The question is about expected value.
The answer suggests to multiply each outcome contribution by its probability.
But in this case we also multiply costs (Contrib=Sales-Costs), however, costs look as they are fixed. The company needs to pay rent for rooms, so I think rent is fixed and does not depend on possible outcome.
How’s right?
Nobody has an idea?
Please, you must be a little bit more patient. You posted your request little time before the exam day.Moreover most of students have further exams so can’t really sacrifice the time.