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section A question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › section A question

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • February 24, 2019 at 6:39 pm #506429
    reem1589
    Participant
    • Topics: 61
    • Replies: 17
    • ☆☆

    An office manager of Harris Plc wishes to minimise the cost of telephone calls made. 40% of calls in peak hours cost $1 each and the remainder of such calls cost $1.50 each. 30% of calls at other times cost $0.80 each, 50% of them cost $0.90 each, and 20% of them cost $1 each. This proportion cannot be varied, though the total number of calls made in peak hours and of calls made at other times can be. If X = the numbers of calls made each day in peak hours, and Y = the number of calls made each day at other times, the official manager’s objective is to:
    A. Minimise 120X + 89Y
    B. Minimise 120X + 90Y
    C. Minimise 130X + 89Y
    D. Minimise 130X + 90Y

    sir could you please explain how to solve the following question. the answer is C.

    February 25, 2019 at 5:40 am #506452
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    You calculate the expected values in the normal way.

    The expected cost of a peak time call is (0.4 x $1) + (0.6 x $1.50) = $1.30 (or 130 cents)

    The expected cost of a non-peak call is (0.3 x $0.80) + (0.5 x $0.90) x (0.2 x $1.00) = $0.89 (or 89 cents).

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