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hello sir
i think the additional training costs Q3 and Q4 is $1.0 and $1.2 ($200*50, $200*60) but the answer is $2.0 and $2.4 and
in question, they intend to delay payment on 50% of all invoices received from the trainers in the two quarters,paying them on month later than is usal. so i think trainer costs q1 is $4 ,q2 $(7.2/2+4) q3 $(10+3.6)could you explain why the difference happen?
The extra trainer costs in quarters 3 and 4 is because of the software upgrade. It says that they will run extra courses and that because there is an extra 20% revenue there will be 20% extra trainer
costs.
10* 1.2 = 12
12 * 1.2 = 14.4There is no profit effect of delaying the payment to trainers – the cost will still be reported in the quarter that the expense occurred.
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