march/june 2019 question 31

Also other questions are that, why we take the last two months figure and deduct . For instance maintenance cost, 14600-4000=10600 here 14600 is the figure of two months for and 4000 is for if the the hotel is closed . really do not catch it

For gas, you can get the same figure in more than 1 way (and which way you do it does not matter). The power cost before was 20,000. The fixed costs were 8,000 electricity and 2,200 gas, which is a total of 10,200. Therefore variable cost of gas is 20,000 - 10,200 = 9,800. Therefore the new variable cost of gas is 9,800 + (50% x 9,800) = 14,700. For maintenance, 14,600 is not the figure for 2 months. It is the figure for one month if the hotel stays open. If the hotel closes then it will be 4,000. The difference is 10,600.

Dear tutor, it says the running costs for the hotel and water park for each of the last two months are as follows. The figures below in the past paper cover the last two months

Saying that the figure is for each of the last two months does not mean it is the total for two months. Each of the last two months (separately) had the same figures.

Dear tutor,the running cost part is not understandable for me I really do not understand how it can be separately showen with the same figure of 120000,then it should be 240000 not 120000.

The question is asking you to forecast for 1 month. The question gives you the cost for each of the last 2 months. If it is 120,000 in each of the last 2 months then it means each month was 120,000 and, again, you are only forecasting for one month.

Understood now.

Great :-)