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Ask the Tutor ACCA FR
Flyscreen
I agree with your 24 x 0.075 and with 32 x 0.015
But don't we have to take account of the 'and even returns will more likely be able to be resold.' comment
What answers are available?
Er, no! There are always 4 options - you've only given 3!
It would have been so much easier if you had given me full information to begin with!
Last year: $24,000,000 x 7.5% x 20%
Last year: Revenue x % returns x lost profit = $360,000
This year: $32,000,000 x 2% x 25%
This year: Revenue x % returns x lost profit = $160,000
Movement of $200,000
You're welcome
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