Acca f5

mark057

I've just received my F5 performance management text from BPP and had a quick browse through.

Is it just me or does it look as if you have to be a maths professor to actually understand anything in it.

I sat my F4 paper in Dec but this just looks HORRIBLE.

Anyone else had any experience of this paper.

Mark

messedup89

I sat this paper in June last year.
At first i couldn't get my head around it.
But once i had i found it a relatively easy paper and actually rather liked the exam.
I am going to be sitting it at advanced level as i liked it that much

PGM

messedup89 wrote: »

I sat this paper in June last year.
At first i couldn't get my head around it.
But once i had i found it a relatively easy paper and actually rather liked the exam.
I am going to be sitting it at advanced level as i liked it that much

I sat the advanced one in December, rather liked it also, very wordy though.

AK002

Agreed!

It was horrendous! Sat in just there in December.

The paper was easy though if i'm honest, I think we got lucky though?

If I fail i'll be raging as I may have to learn all the maths formulas which i hate!

PGM

AK002 wrote: »

Agreed!

It was horrendous! Sat in just there in December.

The paper was easy though if i'm honest, I think we got lucky though?

If I fail i'll be raging as I may have to learn all the maths formulas which i hate!

Thats exactly what I was thinking. I was doing the entire exam thinking am I missing something?!

It all seemed straightforward. But, it was the first exam set by a new examiner, so maybe they were testing the water and we did get lucky?!

messedup89

AK002 wrote: »

Agreed!

It was horrendous! Sat in just there in December.

The paper was easy though if i'm honest, I think we got lucky though?

If I fail i'll be raging as I may have to learn all the maths formulas which i hate!

When i sat it in June most of it seamed straight forward.

But i looked at Decembers one (curious) and it seamed even easier than Junes!

Nice paper i think

AK002

PGM wrote: »

Thats exactly what I was thinking. I was doing the entire exam thinking am I missing something?!

It all seemed straightforward. But, it was the first exam set by a new examiner, so maybe they were testing the water and we did get lucky?!

We'll have gotten lucky if we pass !

mark057

I've been using the study text again today and i'm pretty irritated at paying out good money for a text that explains sod all.

I did fairly well in management accounts in AAT but the joker who wrote this text has not considered explaining any of the calculations.

Wish i was still doing the law paper.

mark057

I have a marginal revenue question that i could use some help with.

Question: AB has used market research to determine that if a price of $250.00 is charged for product G, demand will be 12, 000 units. It has also been established that demand will rise or fall by 5 units for every $1 fall/rise in the selling price. The marginal cost of product G is $80.

Required: If marginal revenue = a-2bQ when the selling price (p) = a-bQ, calculate the profit maximising selling price for product G.

Answer from book:

b = Change in price divided by change in quantity ($1/5 = 0.2

a = $250.00 + (12, 000/5) x $1) = $2650

MR = 2,650 - (2 x 0.2) = 2,650 - 0.4Q

Profits are maximised when MC = MR, when 80 = 2650 - 0.4Q

2,650 - 80 = 2,570 x 10/4 = 6,425

Profit maximising demand = 6,425

I understand everything up to the point when the MR figure is less marginal costs of $80 and the multiplied by 2.5 (10 divided by 4).

Can anyone explain where the 10 divided by 4 figures are derived from and why it is divided and multiplied by 2,570? What does the figure of 6,425 actually tell you?

Many thanks

Mark

PGM

6425 is the quantity at which additional selling revenue per unit (MR) has reduced down to and equals the additional cost of making that extra unit.

So thats the amount the company should make, if they make any more they could only be sold at less than cost of production.

Then you'd go on to the waffly bit about you may want to make more at a loss with a penetration pricing strategy etc.

mark057

Where is the 10 divided by 4 figure coming from?

Rozzi Rainbow

Your formula for MC = MR is 80 = 2650 - 0.4Q. You need to solve to find Q.

This can be rearranged as 80 + 0.4Q = 2650, or 0.4Q = 2650 - 80 = 2570.
If 0.4Q = 2570, then Q= 2570/0.4 or 2570 x 10/4 (as 10/4 = 0.4).

Hope this helps, sorry if it's it bit rushed, need to get back to work in 2 mins!

PGM

I dunno

The answer is; "Profits are maximised when MC = MR, when 80 = 2650 - 0.4Q
"

Re-arrange the equation;

80 = 2650 - 0.4Q
0.4Q = 2650-80
0.4Q = 2570
Q = 2570 / 0.4

Q = 6425

Quantity to maximise profit is 6425 units.

Rozzi Rainbow

Just realised that should read 4/10 not 10/4 !!!

PGM

Rozzi Rainbow wrote: »

Just realised that should read 4/10 not 10/4 !!!

Makes more sense, why write 4/10 instead of 0.4, thats totally pointless.....

Rozzi Rainbow

Right, now I've got back home I've had change to work this out. Sorry Mark for my last 2 rushed posts that might've not have made a lot of sense!

Do you follow my first post up to 0.4Q = 2570 ? If so, it's just a case of dividing 2570 by 0.4.

Where I think your book is trying to confuse things is by showing a different method for dividing by decimals/fractions. 0.4 = 4/10 so 2570 divided by 0.4 can be expressed as 2570 divided by 4/10. When you divide by a fraction, it is the same as multiplying by the reciprocated fraction (in this case 10/4). So 2570 divided by 4/10 is the same as 2570 multiplied by 10/4.

Hope this makes some sort of sense to you. At the end of the day, if you are happy with dividing by 0.4 and can get the right answer by doing that then don't worry about the 10/4!!!

Good luck with the rest of your studies.

mark057

Thank you so much for the explanation. The light bulb in my head has just switched on lol.

I'm definately booking onto a BPP classroom course.

I managed to prepare myself for the F4 exam by just buying a study text from BPP but fed up of trying to learn these subjects without proper support from tutors.

Mark

PGM

mark057 wrote: »

I managed to prepare myself for the F4 exam by just buying a study text from BPP but fed up of trying to learn these subjects without proper support from tutors.

Mark

Yup, distance learning is overrated. How do they get us to pay so much to teach ourselves

Rozzi Rainbow

No worries Mark, glad it makes sense to you now. I learned F5 at college. I'm glad you found F4 not too difficult by self study as I think I'm going to end up teaching myself that one.