Question 2.3 MOS

kjg-kj

I got myself a bit confused with this question. For 2.2 we were give the total sales revenue and units produced, and from this we could use the variable costs and work out the contribution per unit.
Then in 2.3 we were told that the production level was a different figure, and had to work out MOS & MOS %. To do this I used the contribution figure per unit which I used for 2.2 even though it didn't tell us too. Is this correct or should I have re calculated the contribution with the new production figures? I used the contribution figure I had previously worked out to get the Break even figure, but then to work out MOS I used the new production volume. Have I totally messed it up?

westendlad

I am sure I used the same contribution figure all the way though.

kjg-kj

Thanks for that...was so starting to doubt myself!!

artist

Yes I think we have to use the same contribution per unit for this task too. Only difference from previous papers is that they wanted MOS for both products A and B which has different breakeven.

Jentel

I don't feel so bad either now. I think having done so may past papers you begin to think that the exam will be like it, so when i throws a spanner in the work you start to doubt yourselfs. I was surprised not to see a Journal for the stock card. That totally threw me.

cookymonstar

I did same - you were correct to do so - the only change was the sales , and hte fact that we had to calculate break even for product A and for B differently