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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Scrap value at 10%
In a Kaplan question they work out the 10% loss on 13,200 units as 13,200 * 10/110 = 1,200 Units. However in your lecture the 10% would normally be worked out as say 10% of 3000, which is simply 0.10 * 3000= 300 units, but, using their manner you’d get 272 Units. I don’t understand why you’d do it their way as it gives the wrong value.
Any ideas or I am missing something?
Regards
It depends whether the question says that the loss is 10% of the input, or 10% of the output.
Without seeing the whole question I would assume that the input is 13,200 and that the loss is given as 10% of the output. In that case, for every 100 output the loss is 10 and therefore the input must be 110.
Therefore the loss is 10/110 x the input.
OK so 20% would be likewise 20/110 (.1818) 2400 and so on..makes sense to me, I just read a bit quickly and passed over 10% of “output” (not input) reference.
Thanks
No – if it was 20% of output then the loss would be 20/120 times the output.