Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BPP practice and revision kit – Cardio Co
- This topic has 1 reply, 2 voices, and was last updated 1 year ago by  LMR1006. LMR1006.
- AuthorPosts
- November 25, 2023 at 1:08 am #695439Hello sir, I am struggling with one of the questions for cardio Co; 
 Cardio Co manufactures three types of fitness equipment: treadmills (T), cross trainers (C) and rowing machines (R). The budgeted sales prices and volumes for the next year are as follows:
 T C R
 Selling price $1,600 $1,800 $1,400
 Units 420 400 380
 The standard cost card for each product is shown below.
 T C R
 $ $ $
 Material 430 500 360
 Labour 220 240 190
 Variable overheads 110 120 95
 Labour costs are 60% fixed and 40% variable. General fixed overheads excluding any fixed labour costs are expected to be $55,000 for the next year.Required: 
 (a) Calculate the weighted average contribution to sales ratio for Cardio Co. (4 marks)I put the answer as 0.6091, as I thought this is how weighted C/S ratios are usually presented but the answer was as a % I.e 60.92%. Can you please advise why it is a % and not as a decimal. Thank you in advance. November 25, 2023 at 9:05 am #695453The weighted average C/S ratio can be 0.609 or 60.9% 
 Both are correct
- AuthorPosts
- You must be logged in to reply to this topic.


