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Practice question /question 5

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Practice question /question 5

  • This topic has 3 replies, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • August 17, 2016 at 7:45 am #333735
    voudouri
    Member
    • Topics: 18
    • Replies: 12
    • ☆

    Could you please explain me this?

    (3xX)+(9x2X)=21X

    August 17, 2016 at 9:17 am #333747
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23350
    • ☆☆☆☆☆

    I assume that the entity’s business is seasonal and that the monthly revenue in the last 9 months of the year (or the period since acquisition – whichever explanation is appropriate) is on average twice the monthly average for the first 3 months (or the period since acquisition – whichever explanation is appropriate)

    So, if we say that the average monthly revenue achieved in the first 3 months is “X”, then the average monthly revenue achieved in the last 9 months is “2X”

    And 3 x X + 9 x 2X = 3X + 18X = 21X

    So now we can find the value of X and thus the revenue / profits for the 3 month period and for the 9 month period

    OK?

    August 20, 2016 at 10:18 am #334178
    voudouri
    Member
    • Topics: 18
    • Replies: 12
    • ☆

    Ok, many thanks

    August 20, 2016 at 11:36 am #334189
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23350
    • ☆☆☆☆☆

    You’re welcome

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