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In the lectures, on page 61 of the notes, example 5a you did a working in which it included 100/95 times 7.6 and in the online test question 2 more variances there is something similar. In the lectures you did it like it was something obvious but i can’t get my head around it.
In future please ask in the Ask the Tutor Forum if you are wanting me to answer 🙂
5% of the house they pay for are idle. Therefore for every 100 hours they way, 5 will be idle and so only 95 will be worked.
Putting it the other way round, for every 95 hours of work they will need to pay for 100 hours.
Therefore for each hour of work they need to pay for 100/95 x 1 hours and therefore the cost for each hour worked is 100/95 x $7.60
Hi
Kind put me through for this question.Is divisional performance :
A new Co. has non-current assets of $460,000 which will be deprecated to nil on a straight line basis over 10 yrs. Net current assists will consistently be $75000, and annual profit will consistently be $30,000. ROI is measured as return on net assets.
Required :
Calculate the Co. ROI in years 2 and 6.
Please show workings.In future you must start a new thread when you are asking about a different topic. Also, if you want me to answer you should asked in the Ask the Tutor Forum – this forum is for students to help each other.
You must surely have an answer in the same book in which you found the question (you should be using a Revision Kit from one of the ACCA approved publishers), so ask about whatever it is in the answer that you are not clear about and then I will explain.
The net assets at the end of each year is the book value of the non-current assets plus the value of the net current assets. The net current assets are always $75,000, and the book value of the non-current assets are reducing by $46,000 each year.
So calculate the value of the non-current assets (and therefore the total net assets) at the end of year 2 and at the end of year 6. In both cases. the ROI is the profit of 30,000 expressed as a % of the net assets.
I assume that you have watched my free lectures on this? The lectures are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
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