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Dec 2008 Q# 4

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Dec 2008 Q# 4

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
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  • February 10, 2018 at 8:02 am #436178
    Ema
    Member
    • Topics: 73
    • Replies: 107
    • ☆☆

    Sir,

    The Stealth product has generated $320,000 of profit over its three year life measured on a traditional basis. This represents 40% of turnover – ahead of its target.

    Please guide me as how have they got the 40% turnover here??

    Thanks.

    February 10, 2018 at 8:30 am #436189
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    It is actually 38% – the examiner has rounded it to 40% because it is not a critical figure (all that matters is that it is more than target).
    Profit is 320,000, turnover is 840,000. 320/840 = 38%

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