[aau1]

@felix2322654 said:
Only be able to attempt 2 questions (section A plus question 3). Do I have the chance to pass?????

I really regret that I did not try question 3 and question 4 first. Question 4 is so easy yet I even didn’t have time to read the scenario.

It’s possible, you just need 67% for the 2 questions you did

[aau1]

@dwilliam468 said:
I’m still thinking what I could have done better for me to finish and understand the requirements. The questions were so vague esp Q1. Had I done the optional questions first, it could have been better qns 3 and 4 of cause.

Q1 part question, I remember doing this:

4.2mil of additional materials
800k of marketing
500k of auditing

made 5.5 mil of additional costs to catch up, with the selling price of $75 I ended up getting $5 500 000/$75 = 73 333 units for it to breakeven and maintain the same level of profit.

Well that’s how I went about it. Don’t know if I did the correct thing, seems my answer is different from everyone else here.

But they don’t make $75 profit per unit. This is how I approached it….

Assuming they sold all 2m, then their previous profit was $108m (2m x ($75-$21))

With 0.8m advertising, 0.5m audit and increased costs of 10% the unit cost became $23.75 ($21*1.1+0.5/2+0.8/2) So profit became $51.25 per unit

To maintain profit of $108m they had to sell 108m/51.25 = 2.107m units

So they had to sell 107k more

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