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Dear Tutor, I remember the following questions
1) A year ago an equipment bought at 30000$. Its NBV is 10000$. It could be sold 15000$. If it is used under a contract it could be sold at 12000$ after the contract.
What price included in the contract? I wrote 15000$
2) Fixed cost rose from 40000$ to 120000$ and variable cost decreased from 22$ to 12 $
what is the minimum production plan in units?
120000-40000/22-12=8000 units -I wrote in the following way?
are these two questions solved correctly?
1. From what you have remembered it would be $3000 – the difference between what it could be sold for now and what it will be sold for if used in the contact.
2. There must have been more in the question and without seeing the whole question I cannot answer.
sir for the 2nd one, based on what kennigara has provided should not the minimum production plan be 12000units?
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