F9 revision notes

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November 25, 2014 at 4:59 am #212945
fathmath
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Having some doubt regrding the Working capital arithematic 2 in Revision Notes of OT..
to calculate the holding cost the discount of 1% is used regardless of the order size.. Why dont we use the purchase price of that level of ordering the quantitiy?
November 25, 2014 at 9:28 am #213056
John Moffat
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It is a typing mistake in the workings – sorry.

If you calculate yourself the total holding costs you will find that the totals are correct in the answer and do take account of the higher discounts.
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