On the ACCA study hub in ‘Chapter 8.2.2 Profit tables’, there is an activity to construct a profit table for a baker selling cakes.
I am confused as to how the answers in part (a) have been calculated. Why is the is order size for 60 units ‘0’ when the demand is 20, surely the baker could still sell 20?
Could you help me understand how these profits have been calculated please?
I have realised where I was going wrong and understand it now – I was using the sales price and the cost of making price the wrong way around. This can be closed 🙂