Hi sir,
In the question 5 d) at last how do we get the figure 132k ?
Many thanks
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June 2012
6y ago#1The contribution increases by 8.5% x 600 x 12 = 612k per year
The depreciation is (2,120 - 200) / 4 = 480k per year.
Therefore the extra profit is 612 - 480 = 132k per year.
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