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Sir its from a bpp kit question,
No.34 .. Its about taking a decision of ceasing to produce Tumble dryer now or 12 months later.If we cease to produce TD we will be saving material costs amounting 17500+30000+60000=107500$ ..but in the solution they haven’t take account of this,instead they have calculated lost discount amounting 19000$ which i cant understand.. Pls help me sir.what amount should i add in the table of relevant costs if i choose to cease producing TD ??I am away from home until Wednesday night and so I do not have the revision kit with me (and I will need to look at the actual question).
Please can you ask again on Wednesday so that I don’t forget, and I will answer you when I am home.
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