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Hello John Moffat.
Please help me with the two questions – from the mock exam.
Question 1.
A company is intending on introducing a new product. They have made two test units, the first of them took 8 hours to make and the second took 6 hours. What is the learning rate?Question 2.
Selling price will be set at $140 per desk and they require a mark up on cost of 40% to be achieved. What will be the target cost for the new desk?If you want me to answer then you should ask in the Ask the Tutor Forum – this forum is for students to help each other!
Both of the questions you ask are explained in detail in my free lectures. The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam.
Question 1: The average time per unit when they make 2 units is (8+6)/2 = 7 hours. Therefore the learning rate is 7/8 = 87.5%
Question 2: If the profit is 40% of cost, then the selling price is 140% of cost. Therefore the target cost = 100/140 x 140 = $100.
Why have you not watched the lectures before attempting the mock exam? 🙂
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