- This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Q2 2016 Sep Units for Certain profit
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f5/exampapers/f5-2016-sep-q.pdf
Within this, we have to multiply the final answer by 2 to add on to the initial we get (7,500 x 2) + 7,500.
This confuses me as during the algebra we multiply 4 Contribution by 2 to account for the fact that particular product sells double the units, isn’t that us accounting for the fact it sells double right there and then? Why do we double it again at the end?
I’m horrific at algebra and can’t find a lecture dealing with the formula (perhaps I’m too stressed at this point to find it).
Please elaborate if possible.
You do not need algebra to solve this question! (The exam is not testing you on algebra, but on your understanding, which is why only 50% of the marks in the exam are for calculations).
Treat as though you made batches and each batch contain 2 units of Y and 1 unit of X. The total contribution per batch would be (2 x 4) + (1 x 10) = $18.
We need a total contribution of 45,000 + 90,000 = $135,000.
Therefore we need to make 135,000/18 = 7,500 batches.
Since each batch contains 3 units (2 + 1), then in total we need to make 7,500 x 3 = 22,500 units.
You can find my lectures working through every question in this exam, linked from the following page :
https://opentuition.com/acca/f5/f5-revision-kit/