- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
hi John,
In CVP in past papers A to C and Hair. When asked to calculate the sales revenue & profit for the graph, why in AtoC do you take product C first then add c&a, then add a,c&b and subtract the fixed cost of 9000 each time?
Where in Hair it is calculated like in your lecture where you take product with highest CS take off the FC from contri and then you just add the contri from the remaining two products to get your total profit for the chart?Sorry for the delay John, A to C co is in the Becker revision questions & Hair is from ACCA D12. I understand if you do not have access to Becker I just found the example strange as it deducts the fixed costs each time you add another product & it also adds the products. E.g. Product A contribution less FC, then product A plus B total for both contribution less FC, then Product A,B,C all 3 contribution less FC.
Thank you m
- You must be logged in to reply to this topic.