do u have any lecture for decision on june 2013 . i am not understanding the figure working on the site how they arrived at 0.5×3.6)+0.5×3.24=3.42m and the rest coming down.i knwo the probability they using but how they are 3.6 and 3.24

Point A, is where there are 6,000 member. In which case, the operation costs will either be $120 per member or $180 per member.

If they are $120 per member, then the profit will be 6,000 members x ($720 – $120) = $3.6M per year. If the costs are $180 per member, then the profit will be 6,000 x ($720 – $180) = 拢3.24M

After watching your lecture, I have some questions regarding the planning and operational variances. Before saying question shown below, I would say that I do watch your lecture thoroughly.

In this question, only rate (expenditure) and efficiency for planning and operational variances are required to calculate. However, I noticed that some questions may require to calculate total planning and operational variances, which is fearing. For total variance, is there any rule of the thumb to calculate?

When the current examiner has asked planning and operational variances she has always wanted rate and/or efficiency (for labour) or price and/or usage (for materials). If she also wanted the total planning and/or total operational for one of them, then you would simply add the two together.

I am not sure what you mean by ‘ready to use’ figures.

If she wants you to calculate then you will certainly be given enough information. Other times she gives you the figures and then asks you to comment – not calculate.

melindap says

do u have any lecture for decision on june 2013 . i am not understanding the figure working on the site how they arrived at 0.5×3.6)+0.5×3.24=3.42m and the rest coming down.i knwo the probability they using but how they are 3.6 and 3.24

John Moffat says

There is no lecture on this question.

Point A, is where there are 6,000 member. In which case, the operation costs will either be $120 per member or $180 per member.

If they are $120 per member, then the profit will be 6,000 members x ($720 – $120) = $3.6M per year.

If the costs are $180 per member, then the profit will be 6,000 x ($720 – $180) = 拢3.24M

acaqub says

Dear John,

After watching your lecture, I have some questions regarding the planning and operational variances. Before saying question shown below, I would say that I do watch your lecture thoroughly.

In this question, only rate (expenditure) and efficiency for planning and operational variances are required to calculate. However, I noticed that some questions may require to calculate total planning and operational variances, which is fearing. For total variance, is there any rule of the thumb to calculate?

Thanks a lot!

John Moffat says

When the current examiner has asked planning and operational variances she has always wanted rate and/or efficiency (for labour) or price and/or usage (for materials).

If she also wanted the total planning and/or total operational for one of them, then you would simply add the two together.

acaqub says

Thanks John!

I have found the formula and example in newest BPP passcard so I then asked this ‘silly’ question.

May I assume that I will be given sufficient info in the exam (sometimes I am feared about ‘ready to use’ figures – no need to multiply)?

Thanks a lot!

John Moffat says

I am not sure what you mean by ‘ready to use’ figures.

If she wants you to calculate then you will certainly be given enough information.

Other times she gives you the figures and then asks you to comment – not calculate.

acaqub says

Dear John,

‘ready to use figure’ means the figure can be used without further calculation i.g. the cost for actual performance in this question.

Thanks a lot!

My fear has been fully allayed.

Samoar says

Hello Mr Moffat

Thank you and Open tuition very much for your great content – it has been very helpful indeed!

John Moffat says

Thank you – I am pleased that you find our content helpful 馃檪