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Merkland Sportswear June 2015

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › Merkland Sportswear June 2015

  • This topic has 5 replies, 3 voices, and was last updated 7 years ago by Ken Garrett.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • June 2, 2016 at 1:45 pm #318876
    Joanna
    Member
    • Topics: 24
    • Replies: 34
    • ☆☆

    Hi Sir,

    For qns 1(ii), I am unable to calculate out the new contribution per unit of $51.9 and the no of units to cover the lost operating profit of $105,973.

    Please advise

    Thanks
    Joanna

    June 2, 2016 at 3:47 pm #318895
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10587
    • ☆☆☆☆☆

    51.9 = 75 – 21 – 10% X 21 [SP – new cost of sale]

    Profits down by $5.5m; contribution/unit = 51.9

    5,500,000/51.9 = 105,973

    June 3, 2016 at 5:46 am #318989
    Joanna
    Member
    • Topics: 24
    • Replies: 34
    • ☆☆

    Thanks! Btw, is planning gap and profit gap means the same thing?

    June 3, 2016 at 5:58 am #318998
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10587
    • ☆☆☆☆☆

    Yes, usually.

    Strictly planning gap could,refer,to other things such as a gap in production capacity.

    August 28, 2017 at 5:35 am #403839
    suhfor
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Can some one please explain the current capital employed of 170.3?

    August 28, 2017 at 7:27 am #403854
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10587
    • ☆☆☆☆☆

    ROCE = Operating profit/Capital employed

    Capital employed = Operating profit/ROCE = 71/0.417 = 170.3

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Viewing 6 posts - 1 through 6 (of 6 total)
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