- This topic has 3 replies, 2 voices, and was last updated 1 year ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
OpenTuition recommends the new interactive BPP books for December 2024 exams.
Get your discount code >>
Forums › ACCA Forums › ACCA PM Performance Management Forums › Question from PM June 2023 Exam.
I got this question in Sec A. I will be grateful to know the right answer:
A company is considering to implement an automation system. After the implementation, fixed costs will increase to $120,000 from $40,000. The variable cost per unit will fall from $22 to $12.
What is the minimum number of output that has to be produced in order to make the implementation of the system worthwhile?
___________ units.
random guessing(I got a different set) the answer is probably 12000 units.
Alright, Thanks. I got the same ans.
Apparently, the answer is 8000 units.:
Increase in TFC = Decrease in TVC
$80000 =( x units * $10).
Which gives x = 8000 units.