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
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BBP ACCA Revision Kit pg 98 Question 285
5y ago#1The 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.
ok thanks a lot I understand now
5y ago#3You are welcome :-)
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