# &amp; another for FP experts

Registered Posts: 82 ? ? ?
Anther question from aat practice exam:

3.
The cost per unit of a product has increased from £36 in January to £40 in April. The cost per unit was £35 when the index was rebased to 100.

A The cost index in April was 114 and the increase from January to April is 11.11%
B The cost index in April was 111 and the increase from January to April is 11.11%
C The cost index in April is 114 and the increase from January to April is 10%
D The cost index in April is 111 and the increase from January to April is 10%

AAT's answer booklet thinks its A, but i think its C....

hOW I GOT MINE ANSWER...

(40-36)/40*100 = 10%
40/35*100 = 114 (rounded).

Whats your thoughts!!!! comfused.com is mine

## Comments

• Registered Posts: 2,453
You based the price increase of 10% based on the new price, but a price increase is generally calculated on the old price.

So you did it all correct, but instead of dividing by 40 you would divide it by 36 instead.
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