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Bpp kit mock exam 2 section b question 2

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Bpp kit mock exam 2 section b question 2

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • June 6, 2016 at 2:07 pm #319868
    Igrar
    Participant
    • Topics: 28
    • Replies: 24
    • ☆☆

    Hi, Sir.
    How they calculated variable cost for 2nd and 3rd batches?
    And also in general i find this question very difficult.

    Hope i will not get this hard questions on wednesday!:(

    June 6, 2016 at 4:43 pm #319905
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    The learning rate (using the doubling rule backwards) = sq root of (52.71 – 30)/30) = 0.87 or 87%

    Therefore the variable cost for the second batch = (0.87 x 30) + 30 = 56.1

    The total cost for 3 batches is 3 times the average cost per batch for three batches, which you get using the formula.

    I do suggest that you watch my free lectures on learning curves – I really cannot type them all out here 🙂

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