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Sir,for PYQ Sep/Dec 2016 Q1 part (a)
Question paper note 7: it stated that “it was agreed that if the customer ordered an additional 5,000 units, a volume discounted price of $950 per unit would apply.”
Why did the answer assume the customer will order an additional 5000 unit? can the customer be order only 13000 unit(6000+7000) as the question did not say clearly, therefore, the discounted price did not apply?
Thank you.
He’s just explaining what would happen if they did the order the extra inventory – it’s good sometimes if you give a range of answers
As always, whether or not you get a different answer doesn’t matter – they are marking you on the quality of your explanation.
Hi Sir, does zippy in total purchased for 6k + 5k+ 7k = 18k units??
And how the 2k units came from, which minus which?
Also, in order to arrive at $972 per item, they took 4k + 5k, but how does this in relevant to 7k units?
Also, in note 3, the net assets : $118m + ($48m x 9/12) = $154m.
Where did the $48m came from?
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