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Hi john. I am unable to solve question 104 of revision kit. Answer also doesn’t have required workings. Please help. Exam in 2 days time.
I am wondering if you are referring to the BPP Revision Kit, and if so if you are using the current edition, because the answer to Q104 in the current edition does show the full workings.
If it is Q104 of the current edition, then for product W, the extra cost of purchasing externally is 9 – 8 = $1.
It currently takes 0.1 hours to produce, and so making them in-house is saving
$1 / 0.1 = $10 per hour.We do the same calculation for each of the other three products, and then rank them for making in-house in the order of the biggest saving.
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