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CVP analysis chapter 8

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › CVP analysis chapter 8

  • This topic has 5 replies, 2 voices, and was last updated 9 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • October 23, 2015 at 11:41 am #278547
    mike0943
    Member
    • Topics: 18
    • Replies: 58
    • ☆☆

    hello john

    referring to your lecture notes on page 53 the question 2 on the test :

    i could not understand how you arrived at 20% as your answer…i seem to be getting 16.67% as the margin of safety (( 240000-200000)/240000*100 = 16.67%)

    alternatively in units:
    breakeven sales in units = 80000/(20-12) = 10000
    Margin of safety = 12000-10000 = 2000 units

    please correct me if i am wrong

    October 23, 2015 at 1:10 pm #278560
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    The answer is C.

    (I think you must have downloaded the notes some time ago, because originally there was a mistake and it did show the answer as 20%. However it was corrected a month or so ago and now it does show the correct answer.)

    October 23, 2015 at 5:21 pm #278588
    mike0943
    Member
    • Topics: 18
    • Replies: 58
    • ☆☆

    ohh no….i have already printed the notes…i hope there aren’t any other changes, is there?

    October 23, 2015 at 7:35 pm #278615
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    No – I think that was the only one.

    October 23, 2015 at 9:33 pm #278633
    mike0943
    Member
    • Topics: 18
    • Replies: 58
    • ☆☆

    ok thanks john

    October 24, 2015 at 8:17 am #278677
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54701
    • ☆☆☆☆☆

    You are welcome 🙂

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