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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Practice question /question 5
Could you please explain me this?
(3xX)+(9x2X)=21X
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?
Ok, many thanks
You’re welcome