June 2012

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April 12, 2020 at 10:26 pm #567382
pinkyjovin123
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Hi sir,
In the question 5 d) at last how do we get the figure 132k ?
Many thanks
April 13, 2020 at 7:59 am #567750
John Moffat
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The 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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