ECR Dec 2008 Exam
Esme
Registered Posts: 711 Epic contributor ๐
I'm having a go at this exam and am a bit stuck...
Section 2 Task 1
In the notes it says that the company chartering the flights has negotiated a reduction of 10% per mile, paid on all miles flown in excess of 5,000.
Where would this effect the profit statement? I'm really confused!!
Section 2 Task 1
In the notes it says that the company chartering the flights has negotiated a reduction of 10% per mile, paid on all miles flown in excess of 5,000.
Where would this effect the profit statement? I'm really confused!!
0
Comments
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I'm having a go at this exam and am a bit stuck...
Section 2 Task 1
In the notes it says that the company chartering the flights has negotiated a reduction of 10% per mile, paid on all miles flown in excess of 5,000.
Where would this effect the profit statement? I'm really confused!!
Good luck0 -
Im sure i did that aswell! i remeber vaguely.
Oh god what a horrible exam totally was convinced id fluffed it but passed by stroke of luck! Just hope i do the same in June FRA :-(0 -
Thanks! I thought I'd start on this paper as I'd realised from reading the forum that it was quite hard! I'm hoping I'll be in for an easy paper but won't keep my hopes up!0
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I hope I'm not dampening your enthusiasm, but I felt Dec 2008 ECR was fair (particularly the question you refered to). I had a minor issue with the EOQ part of 1.2 and would have prefered the examiner to not use the word relevant in 2.1 (b)
I honestly think you should expect this type of question in June, perhaps in relation to a raw material where increased production enables the business to have bulk purchasing discounts.
It might even include a stepped fixed cost.
Look at the question you refered to:- Find the original price per mile - ยฃ500
- Reduce it by 10%
- So the price per mile over 5000 is ยฃ450
- Then each column where the total miles is over 5000 multiply the miles by ยฃ450
Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
Thanks Sandy, I managed to arrive at those figures but only after the help on here about the sales revenue.
The practice skills test I recently completed had a section involving bulk discounts which was fine, it just confused me as it was the other way round!0
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