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Hi TGee – The scrapped units incurred a further cost, the $5 scrappage fee per unit. So if the demand was 20,000 and the supply was 25,000, 5,000 would have to be scrapped which would incur a further (variable) cost of 5,000*$5 = £25,000 on top of the variable costs for making the units to begin with – does that help??
@Rst I got the same figures as you for Q3 but I didn’t even get to begin drawing a regret table let alone conclude!
Its so good to see all of your comments and know that we are all on the same boat here. This was my second attempt at P5 and I don’t think I have passed.
Just to reiterate what some of you have already said, I took found this paper by far the most time pressured of all papers I’ve sat. There is too much information to take in, so much that I skimmed through a lot of it just so I could start writing.
I have read examiners reports, previous exam papers, attended the 2 hour webinar by ACCA/PWC on how to pass this paper and though the tips I’d picked up seemed good at the time, I don’t feel I was really able to use them because they were not relevant and I was just so time pressured to think about them.
One more thing… the exam desks in Farnborough are TOO SMALL!!!! grrr….