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  • This topic has 3 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 1, 2019 at 11:53 am #506974
    miss2acca
    Member
    • Topics: 18
    • Replies: 14
    • ☆

    Hello sir,
    I am confused in the question no: 21 in BPP REVISION KIT MOCK EXAM 1(September 2016 CBE)
    Since its a scenario based, section B question I wont be able to type it full.
    I hope u can refer to it, if possible, and answer my doubt.
    Actually sir in that question its mentioned that for every increment of 50000 units, a supervisor will need to be emplyed. And one supervisors annual salary is 35000.
    And we have to find flexed production cost if the production is 80% of maximum capacity( max capacity is 262500 units) . So the cost for supervisor is given in solution to be 175000 since it says that 5 supervisors will be needed.
    But 210000/50000 is 4.2. Which can be rounded of n we can use 4. But then if i calculate for 4 supervisor i get the total cost as 2885000( which is the 3 rd option, and is wrong).
    Please let me know sir , why 5 supervisors cost is included n not 4.
    Thank u sir!

    March 1, 2019 at 4:07 pm #507012
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51538
    • ☆☆☆☆☆

    Think about it – 4 supervisors will only be able to deal with 4 x 50,000 = 200,000 units.

    Who is going to supervise the extra 10,000 units? It will need one more supervisor 🙂

    March 4, 2019 at 4:13 pm #507462
    miss2acca
    Member
    • Topics: 18
    • Replies: 14
    • ☆

    Thanks alot sir for helping me!!!

    March 4, 2019 at 5:37 pm #507507
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51538
    • ☆☆☆☆☆

    You are welcome 🙂

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