Bpp mock 4Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Bpp mock 4This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts February 25, 2021 at 6:25 pm #611712 nk16ParticipantTopics: 71Replies: 39☆☆I didn’t understand the way they did qn 15 plz explain February 26, 2021 at 7:50 am #611752 John MoffatKeymasterTopics: 56Replies: 53814☆☆☆☆☆Currently the operating costs are $80m, and this is the total of both variable and fixed costs.Given that the fixed costs / variable costs = 1/3 (33.33%), then for every $3 of variable costs there are fixed costs of $1 and so total costs of $4.So the fixed costs are 1/4 of the total and are here 1/4 x $80m = $20m and the variable costs are $60m.If sales increase by 15%, the contribution will increase by 15% and will be (100 – 60) x 1.15 = 46m, and so the profit will be 46 – 20 = $26mAuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In