- This topic has 6 replies, 3 voices, and was last updated 4 months ago by Kim Smith.
- April 11, 2020 at 1:37 pm #567205alfiejnr
I don’t understand how to use the ANOVA tables to work out “How much extra ticket sales are generated per 1,000 population” and “How much additional profit would be generated if $250,000 were spent on automated ticket barrier investment?”
I have done statistics therefore yes i do know about having to plug in the coefficients using the results of the ANOVA, however i can only use that information to work out the predicted sales i.e. Y.
I don’t understand how they’re asking for the impact on profit when the variable in question is SALES not PROFIT.
Please help meApril 11, 2020 at 3:25 pm #567209Kim SmithKeymaster
I am not able to look at this until Tuesday – in the meantime, I can only suggest you go back to the BBQ illustration and read all that is said there about how to use and interpret the spreadsheet.April 13, 2020 at 8:11 am #567763Kim SmithKeymaster
If you read the instructions/information on the first page of the assessment – the page from which you download the spreadsheet – it tells you what the independent variables are. The change in the relevant X x its coefficient is the change in Y.
And change in revenue is change is the change in contribution is the change in profit if you don’t have identified variable costs of sale or stepped fixed costs (is assumed knowledge of MA/F2 and PM/F5).June 7, 2020 at 6:25 am #573016Managya
Dear Kim sir, can you plz explain us in detail.June 7, 2020 at 7:35 am #573021Kim SmithKeymaster
You should find my posts on this thread useful https://opentuition.com/forum/ask-acca-tutor-forums/acca-ethics-and-professional-skills-module/June 7, 2020 at 4:45 pm #573083Managya
Dear Sir, i din’t understand this sentence of your,
”And change in revenue is change is the change in contribution is the change in profit if you don’t have identified variable costs of sale or stepped fixed costs”.June 8, 2020 at 7:30 am #573185Kim SmithKeymaster
In the original post the student wrote “I don’t understand how they’re asking for the impact on profit when the variable in question is SALES not PROFIT.”
I was pointing out that in this scenario the $ impact on sales goes “straight to the bottom line” and is the same $ impact on profit. Because there is no variable cost of sales, the increase in sales volume does not have an increased cost of sale (i.e. the change in sales revenue will also be the change in contribution). Then – because the difference between contribution and profit is fixed cost – the impact on profit will be the same as the impact on contribution, unless there is a step in fixed costs (which a scenario would have to indicate – you could just guess it). This is just “basic” cost/management accounting from MA (F2).
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