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f5 question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › f5 question

  • This topic has 3 replies, 2 voices, and was last updated 10 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • December 5, 2014 at 1:56 pm #218386
    juwairiamahmood
    Participant
    • Topics: 9
    • Replies: 18
    • ☆

    Sir, Can u plz help me in solving this question
    Q.Tree Co is considering employing a sales manager. Market research has shown that a good sales manager can increaseprofit by 30%, an average one by 20% and a poor one by 10%. Experience has shown that the company hasattracted a good sales manager 35% of the time, an average one 45% of the time and a poor one 20% of the time.The company’s normal profits are $180,000 per annum and the sales manager’s salary would be $40,000 perannum.Based on the expected value criterion, which of the following represents the correct advice which Tree Co shouldbe given?
    A-Do not employ a sales manager as profits would be expected to fall by $1,300
    BEmploy a sales manager as profits will increase by $38,700
    C-Employ a sales manager as profits are expected to increase by $100
    D-Do not employ a sales manager as profits are expected to fall by $39,900

    December 6, 2014 at 10:27 am #218814
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    You can find the answer if you download my suggested answers to the Paper F5 December 2014 exam.

    December 6, 2014 at 7:45 pm #218992
    juwairiamahmood
    Participant
    • Topics: 9
    • Replies: 18
    • ☆

    Thanks a lot sir 🙂

    December 7, 2014 at 8:42 am #219065
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    You are welcome 🙂

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