Past Exam Paper Mac 2008 Task 2.2 c

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Faraa
Faraa Registered Posts: 9 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
Hello,

I'm having a really blond moment and can't work out the answer to 2.2 c)
I calculated the life cycle cost of 2,200,000 correctly but to what do I compare it to.
In the answer is say ' total net savings is 800,000 over 4 years'... where does the 3,000,000 come from?? It's probably really simple...
Many thanks for your help ;)

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  • jilt
    jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
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    Faraa wrote: »
    Hello,

    I'm having a really blond moment and can't work out the answer to 2.2 c)
    I calculated the life cycle cost of 2,200,000 correctly but to what do I compare it to.
    In the answer is say ' total net savings is 800,000 over 4 years'... where does the 3,000,000 come from?? It's probably really simple...
    Many thanks for your help ;)

    Hi faraa, its the reduction in labour costs re 2.2a £750,000 x 4 years = £3,000,000 less the cost of £2,200,000 gives you the net saving of £800,000
  • Faraa
    Faraa Registered Posts: 9 New contributor 🐸
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    Fantastic, thanks very much for your answer. Didn't even think of calculating total labour savings...
  • jilt
    jilt Registered Posts: 2,903 Beyond epic contributor 🧙‍♂️
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    Faraa wrote: »
    Fantastic, thanks very much for your answer. Didn't even think of calculating total labour savings...

    It was required for 2.2a, be careful not to miss any questions, I nearly did it once myself. Also try to remember, they gave info regarding how many units the new machine could produce per hour compared to the old machine and I think its rare that they stick in info thats not needed, ie they don't seem to include red herrings.

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