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section c

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › section c

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • June 25, 2021 at 2:13 pm #626295
    xyzc
    Participant
    • Topics: 357
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    gam co (6/14)

    For part a) of this question, should variable costs of 12 be used for volumes up to 100000 units and variable costs of 11 be used for volumes over 100000 or is it that only one of the variable costs figure be used whether it is above 100000 or below 100000

    June 26, 2021 at 8:39 am #626354
    John Moffat
    Keymaster
    • Topics: 56
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    • ☆☆☆☆☆

    The question says that the cost would fall to $11 for all the units produced. So if they produce less than 100,000 then all the units cost $12. If they produce more than 100,000 then all the units cost $11.

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