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Cardale industrial metal co – second question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Cardale industrial metal co – second question

  • 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
  • July 8, 2021 at 11:47 pm #627254
    ythomas
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    Good evening sir,

    In the answer for the second question of CIM co, it states that “if controllable profit is calculated it is 18.24% for division f and 22.64% for division n… I’ve been trying to figure out how they got this amount.. is it possible you could assist?

    July 9, 2021 at 8:50 am #627268
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    The answer says “if the controllable profit margin is calculated …..”

    The profit margin is the profit as a % of the revenue.

    So using the controllable profit, then for F it is 2,645/14,500 = 18.24%, whereas for N it is 1,970/8,700 = 22.64%.

    July 9, 2021 at 10:20 am #627273
    ythomas
    Participant
    • Topics: 16
    • Replies: 18
    • ☆

    Thank you for your help, most appreciated!

    July 9, 2021 at 1:44 pm #627277
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54664
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Cardale industrial metal co – second question’ is closed to new replies.

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