- This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.
- You must be logged in to reply to this topic.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Hi Mr Moffat,
firstly excellent lectures, thank you!
I did https://opentuition.com/acca/f5/f5-revision-mock-exam/ and in question 27/30
Variable costs (as % of selling price) are: product P 75%, Q 87.5%, R 60%
This percentage I did deduct from selling price,what seems to be wrong and in results calculation shows the right way is to calculate e.g. for
product P= Sales units 4800 x 25%of selling price x selling price per unit $5.
Why it is not correct to calculate contribution for product P= (Sales units 4800 x selling price per unit $5) – 75% of selling price?
It doesn’t matter how you calculate it – both ways you have written it give the same result, which is $6,000 !