AAT Practice Assessment 2 for CRDC- Task 1 A

loshie

can anyone help me with this question?

BGC charges £500 per day for consultancy support.

They sign a contract with HLMP 1 Jan X1 for 4 months with plan to charge 50 days support. The agreed rate was £400 per day subject to Minimum of 40 days support.

total of 25 days were worked 1Jan- 31 March. Invoiced amount to date is £10,000 during this time they provided 13 days support,
How much should they invoice the client for April?

The answer is £6000, can anyone explain how they get this answer?

loshie

anyone?????? x

welshwizard

Total invoice for period should be 40 days x £400 = £16,000.
As £10,000 has already been invoiced, only £6,000 remains
As the contracted minimum is 40 days for the period, the 25 & 13 days are red herrings.