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Hi,
I wound ask that, the question asked for 6 possible outcome but calculated more than that, will I gain some mark?
And the question 3b about the transfer price, the question stated “using suitable calculation”, is it we needed to use our own example to explain?Each bit of your workings is marked separately.
If part of what you did was correct then you will get some marks.3b was expected you to advise using figures from the question.
If you drew your graph in pencil then I am sure it will still be marked (although the exam instructions did say to only use black pen).
Thank you for your replied!
But the 3b stated that the company working in full capacity, it’s means than the transfer prices would be the variable cost plus opportunity cost right? As the question did not provided price per until or $7550 is for how many until, then how we calculated the opportunity costs?It is true that you cannot calculate a price per unit, but you can still advise by looking at the effect in total.
At present the transfer price is the same as that charged to external customers, which is therefore variable cost plus opportunity cost.
You can calculate what would happen if Gearbox bought from external suppliers (and therefore C could sell more externally).If like that, then I used my own figures to answer for transfer price and calculated per until for it. Because the question stated total transfer price or transfer price.
Will my whole answer marking as 0 mark?
Sorry for asking too much, because I need to planning for what papers to take next semester as my class start 30th June before result releasing.You will not get 0 mark.
Most of the marks are for proving your understanding rather than getting the correct figures.
If it is clear that you understand the idea then you will get reasonable marks.
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