Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
November 24, 2022 at 10:09 am
Are there any workings for question 4?
John Moffat says
November 24, 2022 at 3:39 pm
A has unlimited production capacity and therefore the minimum TP is the marginal cost of $30.
B has net marginal revenue of 70 – 20 = 50, and therefore that is the maximum TP.
Have you watched the free lectures on this?
September 10, 2022 at 2:26 pm
Sir In Question No 3,
We are giving up the Contribution of X ($4 per hour + 100 SP) because the business needs Y. So we only Produce Y & stop producing X??
August 22, 2021 at 4:58 pm
In question 3, I didn’t quite understand why the marginal cost is 100 and not 80?
November 24, 2021 at 10:52 pm
As you are looking to transfer product Y to another department, therefore you would use the marginal cost of product Y, not X.
September 10, 2022 at 2:49 pm
So Y is being transferred to the other division, That’s why the Minimum Price should be > 100 & the Greater contribution lost is $4 per hour so $40( 10×4) becomes our opportunity cost !! Thanks man !! Clear now !!
May 21, 2021 at 5:15 am
In question 2, why is the buying cost of $350 must be subtracted with marginal cost of $240?
May 21, 2021 at 9:16 am
Because if Q buys from outside they will pay 350 and P will no longer be making it which will save costs of 240. So it will be costing the company an extra 110.
You must be logged in to post a comment.