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Hello
I have lack of understanding in this question ..that how the working capital and increase in inv per 1$ increase in revenue is calculated …why we are doing 20/120 ..how do we get these numbers as no other info is given
I am away from home until Thursday and do not have the Revision Kit with me. If it is a past exam question then say which exam because I can access them.
Otherwise please ask again on Thursday and I will answer when I get home.
This qs is lamri from Dec 2010 attempt.
Also I have to ask yilandwe qs of June 15 qs 1…how we got the remittable costs .
Thank u
The first sentence of the Lamri question says that the forecast profit is 20% higher than the current profit. Therefore the current profit is 20/120 x the forecast profit.
With regard to Yilandwe, in future please ask about different questions by starting new threads. The reason is that our answers are there to help everyone – we do not give private tuition and peoples the search box on our pages to find answers to previous questions.
Which remittable cost are you asking about, because there aren’t any? Are you meaning the remittable contribution? If to, then they are currently making a contribution 40, but by increasing the price by 40 the contribution will increase to 120.
Thank u
Sorry I didn’t start a new thread ..I was unaware
Next time I will ask separate
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