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Dec 07 Spike Co question 3 part d

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Dec 07 Spike Co question 3 part d

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  • October 27, 2012 at 1:04 pm #54898
    kirstie27488
    Member
    • Topics: 14
    • Replies: 5
    • ☆

    Hi there,

    Can someone explain to me why 160,000 and 180,000 are used as a revised sales volume? why is the 1.8m and 1.6m not used?

    Thanks in advance

    October 28, 2012 at 2:58 pm #106099
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54458
    • ☆☆☆☆☆

    The 1.8m and 1.6m refer to the total market (i.e. the sales of everyone – Spike and all its competitors).
    When Spike did the budget, they expected to have 10% of the total market (180,000 out of 1,800,000), and it Spike’s variances that we are calculating.

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