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If someone can help me out in calculation for operational gearing in ACCA DEC12 question number four CCNH, i m confused how the examiner calculate the fixed cost of $831, $110 is running cost which he took variable cost. please break down for $831 fixed cost from the question.
I can’t see how he did it either. To me the fixed costs are likely to be 536 + 257 + 30 = 823.
I assume there’s a misprint in the answer. 823 would produce operating gearing of 7.5, so still very high.
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