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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › June 2010 as 2
Sir!
In this in part b for the calculation of expected value revenue of equine is clear and revenue of riding is 8156160 it is calculated by remaining days of 40 or 20%capacity bcz difference of 8156160 and 7249920 is of 906240 but calculation not cleared how to implement this?
Why are you subtracting these figures? They are both revenue figures that arise under different scenarios. The total costs of 12,855,000 are subtracted to give profits.
No sir how riding school revenue calculated 8156160, and 6343680 other figure of 7249920 is calculated from part a but other those are not cleared ???
7,249,920 is the base figure representing 80% capacity.
90% capacity would earn 7,249,920 x 90/80 = 8,156,160
70% capacity would earn 7,249,920 x 70/80 = 6,343,680