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March/June 2021 exam

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › March/June 2021 exam

  • This topic has 3 replies, 3 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • August 23, 2021 at 1:31 pm #632622
    nbhutia
    Member
    • Topics: 29
    • Replies: 21
    • ☆☆

    Hi Sir,

    I don’t seem to understand the market size and share variances in section C part B.

    So the market share was std volume – revised volume @std contribution for nurses. I don’t understand where the contribution figures are coming from??

    They have done budgeted units so 4200*80%? But would that not be in units? And not in contribution? Because Q1 nurses was £14m/£1000 per nurse= 14000 in volume then*30%= 4200 in units

    With revised it’s revised sales volume of 5670*80% but they haven’t used std contribution for it?

    Thanks you so much in advance sir.

    August 23, 2021 at 5:29 pm #632644
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51555
    • ☆☆☆☆☆

    4,200 is not the budgeted units. It is the budgeted revenue. The national market for nurses was $14M and they held 30% share, so 30% x $14M = $4.2M (again this is revenue and not units).

    The standard contribution margin (per the question) is 80%, and the contribution margin is the contribution as a % of the revenue. So the budgeted standard contribution was 80% x $4.2M = $3,360.

    August 25, 2021 at 10:10 pm #632940
    dcosta01
    Participant
    • Topics: 1
    • Replies: 9
    • ☆

    Hi Sir,

    for this question, could you please clarify in part c how the amounts of 13,230 and 2,870 been calculated?

    many thanks in advance

    August 26, 2021 at 7:32 am #632973
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51555
    • ☆☆☆☆☆

    The sales director reported the figures as being 30% lower.

    18,900 – (30% x 18,900) = 13,230

    70% x 4,100 = 2,870.

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