Shoe Co (June 2016)

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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August 29, 2020 at 10:30 pm #582683
thuongha
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Hi sir,

In the question on calculating total expected profit on the ‘Smart Shoe’ for the two-year period, I see Kaplan’s book answer didn’t take into account the expected marketing costs and resulted $6.96m.

Could you help explain why marketing costs were not included here please?

Thank you so much.
August 30, 2020 at 8:16 am #582695
John Moffat
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I do not have the Kaplan Kit, but I do have the original exam question and answer.

The expected marketing costs should be included – they are included in the examiners own answer and are $4,680,000.
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