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If in Question there are only 2 options then you have to apply calculation on both option but If there are more than 2 options then you can save time by choosing top 2 options with highest premium as you if you paying higher premium then you will be opting for better excercise price.
Choose Top 2 highest premium options for your answer.For interest rate add the all options premium to to thier respective strike rate and compare the total.
Whichever total is the highest choose its strike price and premium for calculation.But in question Beth (12/07), beth sold goods costing $18M to its associate for $28M. At year end inventory was still held by associate.
In the solution its stated, IAS 28 requires that Beth share of profit should be eliminated. Beth share of profit is $3M (28-18=10×30%)
Dr Cost of sales/Retained earning (Beth) $3M
Cr Investment in associate $3MThanks Mike! 😀
And then I should eliminate the profit of 0.2m (5000000×25/125×1/2×40%) from retained earnings of Uzeilli and working of Associate?
Shadow price was 2.8 which means we can earn contribution of 2.8 per kg but after paying the price of $2 per kg which leaves us with $0.8.
$0.8×20=$16Question 2 of part B made me worried because I got both TPAR near to 0.5
Manager salary was not a good option because it was giving loss of 1300.
Im throuhput mcq, the option was to make D and A. In that we got to deduct fix cost from profit to get contribution per unit and then divide it to labour hours to get factory return per bottleneck.
I got it sir, Its 8000-(150 x 11)= 8000-1650=6350 for 11 units and likewise.
Thanks 🙂Sorry sir.
I got the solution but I can’t get how they calculated selling price here. Could you please tell me how to calculate selling price in this question?