Q4 June 2009

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June 7, 2011 at 4:29 pm #49016
littlestart
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Please have a look at the Q4 June 2009.
1)–>How to calculate the cost of sale? I counldn’t understand the answer.
2)–> How to calculate the heat cost? it said 45*8*25. But my understanding is 45*8*25+45*6*25
Why the answer only thinks about the winter 25 weeks? How about the other 25weeks which all belong to the incremental costs?
Thanks a lot,
June 7, 2011 at 6:00 pm #83589
manuel998
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agreed that the whole 50 weeks is incremental however think of it logically yo would only switch the heating on during winter and it says that out of the 50 weeks 25 weeks are related to the winter month hope this helps
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