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Cost per kg??????

Forums › ACCA Forums › General ACCA Forums › Cost per kg??????

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by khonkean.
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  • August 31, 2013 at 1:25 pm #139394
    Pinky
    Member
    • Topics: 5
    • Replies: 11
    • ☆

    A Van delivered wood to two firms in a week. The following details are available.

    Firm Weight of wood delivered(kg) distance covered(km)

    P 200 250
    Q 500 800

    The van cost $ 675,000 to operate for the week. Each delivery was carried separately and there were no other deliveries during week.

    What is the cost per kg/km of wood delivered in the week?

    I got answer $ 1.425/kg/km.

    But correct answer says $ 1.50. Does both same? I per my thinking even if i round up 1.425, it is 1.43

    August 31, 2013 at 3:45 pm #139405
    khonkean
    Member
    • Topics: 2
    • Replies: 64
    • ☆☆

    I’m not sure that the questions right. (besides the (assumed) typo over $675k?). Could you recheck your figures please. Possibly recreating the question exactly as written in the question paper (were the 200, 250,500, 800 in thousands rather than units? please confirm the units of measurement)..
    The driver is obviously distance. Total distance / Total wieght (1050/700) is 1.5 but thats not the cost per kg per km. Thats just the average km per kg transported.
    Using the figures available with distance as the driver the actual journeys cost $160.71 and $514.29 respectively. so cost per km is 0.642857 and when you work that to kg per km the average value is miniscule (0.0045).
    Sorry, no answer yet but when you’ve confirmed the question and unit measurements I’ll work through it again.
    kind regards,
    Shaun.

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