• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

December 2025 ACCA Exam Results

Post comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2026 exams.
Get your discount code >>

Pricing calculation? correct?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Pricing calculation? correct?

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • October 30, 2021 at 8:02 pm #639507
    Syed Ahsan Ali
    Participant
    • Topics: 136
    • Replies: 85
    • ☆☆☆

    We can calculate Max Profit and Max Revenue like this:

    To calculate Max Profit and Max Revenue we need to use formula MR = a – 2bQ

    (1) Maximum Profit is where the MR = MC

    For Maximum Profit:
    MR = a – 2bQ = MC
    MR = 50 – 2($1/100)(1500) = $20
    MR = 50 – 0.02Q = $20
    MR = -0.02Q = $30
    Q = 30 / -0.02
    Q = 1500

    Put that Q=1500 into Price/Demand equation to find out the maximum selling price where we have maximum profit;

    P = a – bQ
    P = 50 – ($1/100)(1500)
    P = 50 – 0.01(1500)
    P = 50 – 15
    P = $35

    (2) Maximum Revenue is where the MR = 0
    For Maximum Profit:
    MR = a – 2bQ = 0
    MR = 50 – 2($1/100)(1500) = 0
    MR = 50 – 0.02Q = 0
    MR = -0.02Q = 50
    Q = 50 / -0.02
    Q = 2500

    Put that Q=1500 into Price/Demand equation to find out the maximum selling price where we have maximum profit;

    P = a – bQ
    P = 50 – ($1/100)(2500)
    P = 50 – 0.01(2500)
    P = 50 – 25
    P = $25

    The quantity (Q) will be higher in maximum revenue because max revenue will be when we have more units sold and it is where we have marginal revenue is 0

    Is that all correct?

    October 31, 2021 at 2:57 pm #639576
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54809
    • ☆☆☆☆☆

    It seems correct, but please do not keep simply typing out what is in my lectures 🙂

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • AliyanKhan on The nature and structure of organisations – ACCA Paper BT
  • Anonymously on Presentation of financial statements – SOCE – ACCA FR
  • ChileCM on ACCA BT Chapter 3 – An organisation’s stakeholders – Questions
  • hinkeiw on Chapter 8 Employment Income TX-UK FA2023
  • BlackHawk241 on Financial instruments – convertible debentures – ACCA Financial Reporting (FR)

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in