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How to calculate operational gearing?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › How to calculate operational gearing?

  • This topic has 1 reply, 2 voices, and was last updated 11 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 18, 2013 at 8:00 am #125876
    submarine
    Member
    • Topics: 10
    • Replies: 11
    • ☆

    Dear P5 tutor,

    In Dec 2012 Q4 answer, the operational gearing is 831/110 = 7.6.
    I cannot get the fixed cost of 831 after adding all fixed cost 536 + 257 + 30 = 823.

    Do you know how to obtain $831m?
    Please teach.
    Thanks a lot.

    May 18, 2013 at 12:24 pm #125936
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10583
    • ☆☆☆☆☆

    I also think the fixed costs are 823. Perhaps 831 is a misprint.

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