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Forums › ACCA Forums › ACCA PM Performance Management Forums › Mock 3 section b q18
Unsure if the answer is correct.
It says revenue to achieve target profit = 885,000 but shouldn’t it be 500,000.
Also unsure where the figures came for Marathon 110/152 and 42/152?
I assume you are referring to the BPP mock exam.
The answer is correct.
To achieve a profit of $500,000, they need a contribution of $885,000 (the fixed costs are $385,000).
The maximum revenue is 20,000 x $55 = $1,100,000 for the full marathon and 14,000 x $30 = $420,000 for the half marathon. So total maximum revenue of $1,520,000.