PM Chapter 12 Questions Quantitative analysis in budgeting
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Hello John,
For question 4, why is the option 1 not correct. In the multiple product profit volume chart, we drew lines for contribution of each product. Ranking them based on their contribution per unit of scarce resource.
Hey I have the same confusion, Can you please explain it to me if you learned it?
It doesn’t show the breakeven for each product separately.
Hi Sir,
Can you say why for question #3 we used $885,120 (units 19,200) instead of 883,200 (20,160 units) ?
@shannLam
We take the highest and lowest outputs (i.e. units produced) and the costs related to those outputs.
In the example, highest output is 22,080 , lowest output is 19,200 so we take the related $960,000 and $885,120, respectively.
highest output – lowest output / cost of highest output – cost of lowest output = cost/unit
@ Kriszemrich Thank you for your assistance.
where did you get^3 from question 2. please can someone explain the question.Thank you
Making another 7 means that they are making 8 in total. Making 8 involves doubling 3 times.
Have you watched the free lectures on this?
June 2023 PM exam question:
Hi Sir,
Could you please give me the solution for this one:
The fixed costs have increased from $ 40,000 to $ 120,000 and the variable cost increased from $12 per unit to $22 per unit. Then what would be the number of units?