MAC June 09 Task 2.2 Model Answers?

LondonMatt

Here are the answers for MAC task 2.2(b)

........................................LapX revised
Sales units of LapX Extreme..............50,000
...................................................£000
Sales revenue................................25,000
Cost of sales..................................0
Direct materials..............................7,500
Direct labour..................................4,000
Fixed overhead...............................7,500
Total cost of sales .........................19,000
Gross profit....................................6,000
Fixed selling and distribution costs......900
Fixed administration costs.................500
Fixed advertising costs.....................2,500
Net profit.......................................2,100

From the Cheif Assessors report:

(b)This part required candidates to revise the profit and loss account based upon a sponsorship deal which would increase costs but also increase demand. There was an amendment to the information in part (a) from a “month of May” to “year ended May”, without considering part (b). The correct answer to part (b) therefore showed an extremely large increase in profit from 45,000 units to 105,000 units (45,000 plus 5,000 per month). Many candidates simply prepared the revised profit and loss account correctly based upon the written instructions. Some, however, read the figures for part (a) based upon one month not a year. They therefore produced a revised profit and loss account based upon 50,000 units (45,000 plus 5,000). Candidates were awarded full credit if they took this approach.

This is confusing. If the 'correct' answer is based on 105,000 units, why has he made the model answer based on 50,000 units? I can't tell if the answer I put - using the 'correct' 105,000 - is right or not, because the man has used the 'incorrect' 50,000...

Anyone else fancy a headache and confirming my answers based on the 'correct' reading, is actually correct?

Sales 105000
Revenue £52500
GP of 19850
NP of 16950

Londina

I really hated this task, it was unnecessary too long for the overhall paper.
Cannot get my head around it at all!!