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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › BPP EXA # 66
Dear Sir,
i am confused how they got leather cost $25, i calculated as below
$10 per meter and 2 meter are needed, 20% wastage, so
to produce for 1 chair we need 2 meter but becoz 20% is wastage so we need 2 meter + 20% wastage (2 + 0.40 = 2.4 meter total needed for 1 chair)
2.4 x $10 = 24 then how they got $25.
please let me know where i am wrong.
Thanks
You figures do not work – if they buy 2.4 and waste 20%, then they would be left with 2.4 – 0.48 = 1.92 meters which is not enough!
For every 100 they buy, they will waste 20 and have 80 available.
Putting it the other way round, for every 80 needed they will have to buy 100.
So to have 2 meters they need to buy 100/80 x 2 = 2.5 meters.
That’s right Sir,
Thank you very much.
You are welcome 🙂