Pev Dec 2004

Terdoo Registered Posts: 144 Dedicated contributor 🦉
Can someone help with task 2.2 as to how they got 995.6 on Material calculation, i know that with revise profit and loss, material has an increase of 5% but i don,t know how it is 95% *(40*660)+ 784 =995.6?

Show some workings please


  • Terdoo
    Terdoo Registered Posts: 144 Dedicated contributor 🦉

    hello still waiting for a reply
  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    the abve question is NOT from DEC 2004 PEV paper
  • SandyHood
    SandyHood Registered, Moderator Posts: 2,034 mod
    My advice, put the model answer away and read the comments from the managers(in the question) 2 or 3 times instead
    40% increase in sales is clear and comes from General Manager of Factory B
    5% saving in material costs is also clear and comes from the Finance Director
    So, starting from Factory B y/e 31 Dec 05 Materials cost: xxxxxx£784,000
    additional quantity worth 40% of Factory A as a result of closing £264,000 (£660,000 x 40%)
    Total material cost before discountxxxxxxxxxxxxxxxxxxxxxxxxxxx£1,048,000
    saving of 5%
    leaving a cost of 95%xxxxxxxxxxxxxxxxxx.xxxxxxxxxxxxxxxxxxxxxxx£995,600

    This is the best advice I can give READ THE QUESTION
  • Terdoo
    Terdoo Registered Posts: 144 Dedicated contributor 🦉
    Re pev Nov 2004

    Thank you for the tip
  • Shab
    Shab Registered Posts: 54 Regular contributor ⭐
    PEV Help

    can anyone tell me what can come in both section of pev apart from varainces and ratios that will be very helpfull and a brief on task 2.3 june 2009 paper discount factor
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