[Antonis_S]

<cite> @eshon5 said:</cite>
q1) decision tree
a) go ahead with expanding as overall ev was 585 after deducting capital cost of 360 compare to not expanding was 420
b)to get max price need to calcuate ev with perfect information less ev without perfect info from part (a) which was about 184

q2) was wholly discursive

q3) revised life cost per unit

material 7.20+14.40 = 21.40
labour =10.60
warranty = 1.8
something else = xxx
total mc was about = 65.xxx or 67

extra unchanged cost =60

expexted selling cost was 192 compare average market price of 150 so it was suitable to use market skiiming price for com

Q4) variance analysis was easy as component 1 planning was fav and operational was fab and comp 2&3 vice versa, generally performance of business was good as well purchasing managers cos overall mix and quantity was favourable due to more use of quality product which help boost of sales quantity

Q5) revised budget was deficit of around 87000 and it was advisable to use zbb for newtown school.

How do you find the deficit of 87k at Q5?

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