Decision Making Question

Turbo_Dave

Hi everyone,
I am just wondering if there is a mistake on page 76 of the BPP book for Financial Perfomance.

The fixed costs were previously £180,000 but with a machine the fixed costs would be £475,000 pa for the rental of a machine.
The question has put that the fixed costs have increased to £227,500 but I cannot see where they have got this figure from. Is it a misprint in the question?

I would post the picture of the question but I haven't got the option to do so on my iPhone.

Kind regards,

Bertie

A missing 0.

180,000 + 47,500 = 227,500.

Maybe.

Bertie

If you have a search around on the BPP site, somewhere you'll likely see an amendments section for books they have rushed out.

Kaplan are the same.

Turbo_Dave

Thank you for your help. Seems like it's a misprint.
I would have thought that the increase would be calculated as 475,000-180,000 = 295,000 but unfortunately this isn't the answer. I'll check on their website. Thank you once again.

Bertie

Yes your logic is more than sound.

I'd agree with you.