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sorry, yes I typed it wrongly , this year the cost is 31000, not 3100……:)

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5.

M.P.V=&1000F, indicates standard material purchased -actual material purchased = 1000, which means $2*material purchased -actual material purchased =$1000—————1

M.U.V=$300A, indicates actual usage-standard usage=300/2=150kg,which means actual usage=3*500+150=1650kg
opening material=100kg, closing material= 400kg, so material purchased=1650+400-100=1950kg———————————————————-2

combine 1 and 2, actual material purchased=$2*1950-$1000=$2900

Dear John Sir, am I right?

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oh yes! Thank you Sir!!! 🙂

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profit depreciation cash flow cumulative
175000 (70000) 105000 105000
225000 (70000) 155000 260000
340000 (70000) 270000 530000
165000 (70000) 95000
125000 (70000) 55000
….. ………… 50000(scrap value)

(530000-400000)/270000=0.48
the pay back period =2+0.48=2.48 years
Dear John Sir,
Am I right?

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got it! Thank you sir !:)

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ah ok I know where i am wrong . Thank you sir !

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Dear John sir,
Another question about high-low:
this year, output 5000u, cost 3100, price index 164
3y ago, output 2000u,cost 8800, price index 132

calculate the variable cost per u expressed in current year price

I can not find the relation within variable cost and price index .

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Dear Sir,
Above 7000 units, v.c shouldn’t be: $1*outputs+$0.6 ??

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Hey Coldett,
Thanks for your reply! But may I ask where is 400 from?

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For Q31: actual worked hours – standard hs for actu prod =2000, means 2000hs was saved, better for profit, so it’s Fav
For BQ2: 12000Fav is right, Mr John said he will correct the given answer 12000 Adv
For Q3, I am also confused , hope Mr John could help us! 🙂

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Dear Mr John,
Thank you so much for your quick reply!!!
Sorry for q4, i still have few questions????:
Why the cash flow of 1-5 year is 90,000 p.a?
Why the average investment =(300000+20000)/2?
Why the additional revenue 120,000 p.a is not relevant?
Could you explain one more time?????
Thanks!!!????????????

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Ok, I got it. Thank you sir!:)

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Ok get it. Thank you very much! :))

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Now I am clear. This is very helpful! Many thanks to your fast feedback!:)

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I found it already thanks anyway

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