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Sir , the answer of this questions on the lost discount the figure for DW- 350000 , WM- 600000 and TD – 60000 are given but I couldn’t understand it , could you please help me
I only have the BPP Revision Kit and there is no question in it called Stay Clean.
If it is a past exam question then please say which exam and I will then be able to find it.
You must be using an old revision kit, because it is not question 40 in the current edition 🙂
The are currently spending a total of $1,010,000 and because this is well over 960,000 it means that they have received a discount of 5%.
Therefore the full price (before discount) must be 100/95 x $1,010,000 = 1,063,158 (and the discount they are currently receiving is 5% x 1,063,158 = 53,158)The new buying cost (assuming for the moment that the discount remained at 5%) is in total 902,500, which would mean the full price would be 902,500 x 100/95 = 950,000.
However, they will not get 5% discount – they will only get 3% discount, and so the discount they actually get will be 3% x 950,000 = 28,500, and they will actually pay 950,000 – 28,500 = 921,500.(There is no problem using a recent past edition of the Revision Kit – just appreciate that the format of the exam has now changed. You can find a specimen exam on the ACCA website.)
Thank you so much sir, I understood , by the way my revision kit is from September 2015 to August 2016, is it ok to use this for September sitting ? Thanks for recommending specimen exam
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