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Chapter 7 – Example 6

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Chapter 7 – Example 6

  • This topic has 3 replies, 2 voices, and was last updated 5 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • January 29, 2020 at 4:15 pm #560170
    tasnimrxo
    Member
    • Topics: 1
    • Replies: 9
    • ☆

    Hi Sir, thanks for a great lecture.
    Please could you explain the below;

    MR=MC = 120 – (2 x 0.001 Q) = 5
    115 = ( 2 x 0.001) Q

    I’ve understood the whole method, however I don’t quite understand how you arrived at 115, I thought it would be 100 as that’s the SP per unit.

    Apologies if the its a very straightforward answer.

    Thanks,
    Tas

    January 30, 2020 at 7:01 am #560190
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    If you are happy with the first line, then to get the second line you subtract 5 from each side.
    120 – 5 = 115

    January 30, 2020 at 1:19 pm #560211
    tasnimrxo
    Member
    • Topics: 1
    • Replies: 9
    • ☆

    Thank you so much, that makes complete sense now!

    January 30, 2020 at 10:41 pm #560232
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54709
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Chapter 7 – Example 6’ is closed to new replies.

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