- This topic has 3 replies, 2 voices, and was last updated 6 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Hello Sir,
For paper J15 Ques 1, the financial acceptability part, how do we get the contribution of $120?
As per the past paper answer its:
<Contribution (parts sales) ($120 +inflation per unit)>
Thank you
They currently transfer at $200 per unit and earn a contribution of $40 per unit. Therefore the cost is $160 per unit.
In future they are increasing the transfer price to $280. So they will earn a contribution of 280 – 160 = $120 per unit.
Viewing 4 posts - 1 through 4 (of 4 total)
- The topic ‘June 2015 Question 1’ is closed to new replies.