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essem – you subtract FC to find profit. X times X’s contribution + Y times Y’s contribution – FC.
My guess. Though i got very different quantities for X and Y from those mentioned above. Pretty sure i f*cked them up somewhere))
redz, i think i got pretty much the same answers) high chances we are both correct.
Anyone remembers Q1 a) b) answers? at least for product X.
For me the difference between Absorption and ABC was in 10-15ish Cents. very similar answers under both methods…
As for variances, to find Standard profit margin aka contribution (in order to multiply it by budgeted and actual volumes of sales) i did:
Sales prices were given at the beginning and i put it here – C/S = 50% and 44.4% (as long as i remember) to find C.
Anyone?
Question with payoffs – yeah, was pretty easy, you just needed to find profit based on level of sales volume, var.costs, advert.costs and fixed.
2nd part of this question is just multiplying payoffs of each decision by the probability, pick the higher one (option 1 right? $30). and for the maximin i guess the answer was also option 1. pick the worst outcomes and choose the highest among them.
Am i right? 😀