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BBP ACCA Revision Kit pg 98 Question 285

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BBP ACCA Revision Kit pg 98 Question 285

  • This topic has 3 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 4, 2020 at 4:34 pm #579224
    nirvana25
    Member
    • Topics: 18
    • Replies: 45
    • ☆☆

    What I did not understand in the answer it says that effect of machine sale the $2,500 should be deducted and the effect if machine purchase $5,200 should be added

    August 4, 2020 at 5:12 pm #579245
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    The machine they are selling is already included in the forecasts and therefore the forecast profit includes $2,500 profit from the machine they are selling.

    When they sell the machine they won’t make the profit of $2,500 and so it needs subtracting.

    The new machine is not I included in the forecast. It will make a profit of $5,200 and so the profit needs increasing by that amount.

    August 5, 2020 at 7:51 pm #579372
    nirvana25
    Member
    • Topics: 18
    • Replies: 45
    • ☆☆

    ok thanks a lot I understand now

    August 6, 2020 at 8:47 am #579400
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘BBP ACCA Revision Kit pg 98 Question 285’ is closed to new replies.

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