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Breakeven question

This topic has 3 replies, 2 voices, and was last updated 8 months ago by John Moffat.

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October 22, 2021 at 6:42 pm #638822
syedwaris
- Topics: 17
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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?
October 23, 2021 at 10:18 am #638868
John Moffat
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I am not able to access the specimens exam because I am not a registered student.
October 23, 2021 at 11:51 am #638889
syedwaris
- Topics: 17
- Replies: 9
you do not need to be registered to access

Here is the link for CBE specimen exam:
https://www.accaglobal.com/scotland/en/student/exam-support-resources/fundamentals-exams-study-resources/f5/specimen-exams.html

Specimen exam 2016 is also given at the back of BPP kit.
October 23, 2021 at 4:46 pm #638917
John Moffat
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- Topics: 57
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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.
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