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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Newtown School's
Dear Sir John,
I have a question to the Newtown School question, particularly to the Salaries.
I don’t understand why they divided by 2?
My calculation to Salries:
Previous y/e : 620,000
One Leaver: (26,000)
Total Salaries: 594,000 /9 months school year= 66,000.
66,000 * 5 months =330,000 .
2% Pay rise since 1st December,Salary increase +2% =(330,000*0.02)+330,000= 6,600+330,000 = $336,600.
Add: 4 months normal salary: 66,000*4=$264,000.
————-
$600,600.
Sir, I found in the result they have $599,940.? What do you think can I solve it my way?Is it correct?
Thank you very much.
Jana.
They are preparing a budget for 12 months – not for 9 months.
The year end is 31 May, and the salary increase is from 1 December. 1 December to 31 May is 6 months 🙂