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Forecasting question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Forecasting question

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • October 5, 2018 at 10:30 pm #476580
    shyvenx
    Member
    • Topics: 6
    • Replies: 4
    • ☆

    An organisation’s total weekly cost (in $000) is represented by the following expression :
    550 + 2.8Q
    Where Q represents the weekly quantity produced and sold in thousands of units.
    Last week 150,000 units were produced and sold

    What was the total cost last week ?
    A. $420550
    B. $550420
    C. $592000
    D. $970000

    For this question I’ve got 420550 as answer but the answer is actually D. $970000
    How is it so?

    October 6, 2018 at 11:54 am #476611
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    You have not read the question carefully enough.

    The question says that Q is the quantity in thousands of units.

    Therefore Q is 150 (not 150,000) in the equation.

    550 + 2.8 x 150 = 970 and the question says that this is the total cost in $000, so is 970,000.

    October 6, 2018 at 8:57 pm #476649
    shyvenx
    Member
    • Topics: 6
    • Replies: 4
    • ☆

    Oh I see, thanks a lot sir, I will be more careful

    October 7, 2018 at 9:33 am #476687
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54796
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘Forecasting question’ is closed to new replies.

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