AAT Level 4 Budgeting - Stepped Cost

Hi,

Just pulling my hair out with this question if anyone doesn't mind helping:

I need to create an Alternative Scenario from my First Draft.

First draft figures:
Sales volume - 84,000
Sales Revenue - 504,000
Depreciation - 8,100

Alternative Scenario
Sales volume - 75,600
Sales Revenue - 476,280
Depreciation - 7200

Depreciation is a stepped cost, increasing at every 10,000 units.

How did they reach the depreciation figure of 7,200 ????

Thanks alot

Lewis

Best Answer

Answers

  • Lewisadams1995
    Lewisadams1995 Registered Posts: 3
    Thank you very much for your help
  • enm1976
    enm1976 Registered Posts: 6
    So glad you asked this question I too was struggling to figure out how they got 7200!! Easy when you know how!
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