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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA APM Exams › P5 Mock paper answer
In the mock paper made available on ACCA global website(https://www2.accaglobal.com/pubs/students/acca/exams/p5/past_papers/p5_2006_dec_ppq.pdf) upon question no 3 Creative division we have the following answer for part b(1)
“A fall of 12% from the current level would result in a unit cost of £41.21 x 88% = £36.26. However, the combined probability of this cost level being achieved is only 18% (this can be abstracted from the probability matrix). This might,
therefore, be seen as a ‘risk seeking’ stance if management decide to proceed with the re-design”
Can someone please guide me how this 18% came about?
I will be most grateful
36.26 is below 35 & .5 cuts from de matrix
i.e .04+.04+.02+.03+.03+.01+.01=.18 = 18%
Could you please share me with Mock P5 June,2011 at 596872744@qq.com?