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Yilandwe 2015

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Yilandwe 2015

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by John Moffat.
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  • December 9, 2015 at 9:22 am #289503
    petus1
    Member
    • Topics: 5
    • Replies: 89
    • ☆☆

    Sir,

    I have a question. The contribution in home country has been calcuted as $120. May i get explanation on this. I guess this might be 200-40-280 but what is the logic behind doing this.Is it Sales- variable cost = contribution,

    December 9, 2015 at 9:25 am #289504
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54759
    • ☆☆☆☆☆

    They currently charge $200 and earn a contribution of $40, so the variable cost must be $160.

    They are going to transfer at $280, so the contribution is going to be $280 – $160 = $120.

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