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CVP

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › CVP

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by AvatarIAW3005.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • May 17, 2024 at 7:03 pm #705573
    Avatarlalan3
    Participant
    • Topics: 10
    • Replies: 16
    • ☆

    Double Co provides a photocopying service for clients at a price of $0.10 per copy. It needs to choose which of two new photocopier models to rent. The costs of each photocopier model are given in the following table:

    Photocopier model S T
    Annual rental cost $10,000 $8,000
    Cost per copy $0.03 $0.05
    What is the minimum number of copies per year at which model S would be preferred to model T?

    A.100,001
    B.142,857
    C.160,000
    D.150,000

    Doubt:

    Actually what is the question referring to ask?
    The solution provided to the examiner report is also quite confusing.
    Can you please make me understand it in a easy way?

    May 17, 2024 at 8:50 pm #705576
    AvatarIAW3005
    Keymaster
    • Topics: 4
    • Replies: 1615
    • ☆☆☆☆☆

    To determine the minimum number of copies per year at which model S would be preferred to model T, we need to compare the total costs of both models and find the point where the cost of model S becomes less than the cost of model T.

    Total cost for model S $10,000 + $0.03x
    Total cost for model T$8,000 + $0.05x
    Subtract 2,000 < 0.02x
    etc

    May 18, 2024 at 5:53 pm #705628
    Avatarlalan3
    Participant
    • Topics: 10
    • Replies: 16
    • ☆

    It will find the value of x and it will be 100,000 but the answer is 100,001.
    How to know this if the question was in fill in the blanks form?

    May 18, 2024 at 6:28 pm #705633
    AvatarIAW3005
    Keymaster
    • Topics: 4
    • Replies: 1615
    • ☆☆☆☆☆

    I do not think this would be a fill in the blank style question

    FIB – Would perhaps be

    What is the minimum number of copies per year at which model S would be preferred to model T?

    —————- to the nearest ‘000

    Or something like that.

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