[kathleen]

Dear Mr Moffat

I was just asking for your insight to this question as i myself was having some major problems with this question even after setting this question in point form.
This question was on an acca website the question is as stated on the website.
I

[kathleen]

Your answer is incorrect the ans should be $18000.00
Solution
Variable Cost = You already have 100+20=120
Therefore your variable cost is 120/12=10

Contribution = selling price – variable costs
= 12-10=2
fixed cost = contribution -profit
(5000×2)- (-8000)
10000+8000
18000

[kathleen]

what about time series analysis that you do not understand

[kathleen]

thanks for the answer when i worked the question got same answer but used different approach

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