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Sir there is a specimen exam on acca website Q3 where we are asked to calculate BE units in order to achieve target profit of $60,000.
But I have a problem with the specific fixed cost that why it is not included in the Fixed costs calculation?
Could you please tell me the reason behind excluding specific fixed cost from BE calculation?
I am not able to access the specimens exam because I am not a registered student.
you do not need to be registered to access
Here is the link for CBE specimen exam:
Specimen exam 2016 is also given at the back of BPP kit.
I am on vacation away from home until tomorrow and so I do not have the BPP Revision Kit with me. However I have now found the question.
The specific fixed costs are only incurred if P2 is made. The question is asking for a breakeven ion only P1 is made and so P2’s specific fixed costs will not be incurred.