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Hi John,
Could you please explain, how to cal standard margin for this question?1)10600-(10600/106)= 600 ( Drastic) – Agreed
2) 13250-(10600/1.06)= 750( Bomber)?
3) 16900 – (10600/1.06) = 960 ( Craker)?Thank you
I do not have the Kaplan Kit (only the BPP Revision Kit).
If it is labelled as being a past exam question then tell me the name and the exam date, because I do have all past exam questions.
Hi John, please see below:
Fort Co produce and sells three models of family car: Drastic, Bomber & Cracker. All of priced to achieve a 6% mark up on STD cost. For month of Jun, Fort budgeted to sell 30,000 units of the Drastic and so have 10% market share of the budgeted sale at a price of $10600/each. Fort Co actually achieved at 15% share of the market, through the market had actually contracted by 5%. Following inf is available for Jul:
Drastic Bomber Cracker
Budgeted 27000 15000 18000
Actual 26000 16000 14000
Budgeted sale price $10600 $13250 $16960
1) What market share? market size?
2) What sale mix variance? sale quantity?Thank you
Given that the selling price is after a 6% mark-up on the cost, the standard profit for a Drastic is 6/106 x $10,600 = $600.
It is the same workings for the other two cars.
Thank you John and really appreciate.
I agreed with the first car, but why two other cars the answer :
2) 13250-(10600/1.06)= 750( Bomber)?
3) 16900 – (10600/1.06) = 960 ( Craker)?When Budgeted sale price $10600 $13250 $16960
Thank you
Good heavens – I meant use the same logic on the other two cars!!!
So for Bomber, the standard profit is 6/106 x 13,250 = $750.
Thank you so much !!! As on the answer shows:
13250-(10600/1.06)= 750( Bomber)
Thanks again.
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