Dear sir, could you explain for me why the target profit in two years'time is set at 135m but when calculate plan a and b, we only use profit in year 2? Thanks you
Ask the Tutor ACCA APM
Dec 2013,q1, (v) Lopten
The target profit in 2 years is 135m.
We compare that to what might be avhieved under each scheme in year 2 : Plan A = 114,so still a gap. Plan B 141 so gap closed.
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