• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

CIMA P2 Chapter 15 Test – Pricing

Forums › Ask CIMA Tutor Forums › Ask CIMA P2 Tutor Forums › CIMA P2 Chapter 15 Test – Pricing

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Cath.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 9, 2019 at 7:26 pm #500502
    reacon
    Member
    • Topics: 5
    • Replies: 3
    • ☆

    On Q1 it asks what the price would be if demand is 225 when:

    $30 = 100 units
    $27 = 150 units

    The answer is $22.50 but I can’t work out why?

    February 3, 2019 at 11:29 pm #504072
    Cath
    Member
    • Topics: 0
    • Replies: 423
    • ☆☆☆

    Hi, Thanks for your question.
    if you have watched the lectures – you should be familiar with the expression:

    P = a -bQ

    where P is price ( which you are trying to find out)
    Q is quantity – in your case 225 units.

    ‘a’ and ‘b’ must be calculated using the existing data which is given….

    a = current price + ((current qty/ change in qty when price changes by $z) *$z)

    therefore using the info given
    a = 27 +(150/50)*$3)
    a = 36

    b = change in price / change in quantity
    b = 3 / 50
    b = 0.06

    so the full expression here is:
    P = 36 – 0.06Q
    so if Q = 225
    then
    P = 36 – 0.06*225
    P = 36 – 13.5
    P = 22.5

    I hope this helps ?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Iby2012 on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • baraka42 on PM Chapter 13 Questions Standard Costing and Basic Variance Analysis
  • baraka42 on PM Chapter 13 Questions Standard Costing and Basic Variance Analysis

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy