Aat level 4 finanicial performance

jaspreet

Hi everyone can anyone solve this question plz it's Aat level 4 financial performance Osborne workbook practice assessment 1 task 8 (b) I couldn't find total fixed costs.can anyone tell how to calculate fixed costs in this questions plz

jaspreet

Can anyone answer plz?

Adele69

I'm weary of questions with no details so am not going to rewrite it out, holding open the Osbourne book while typing is awkward enough. If this is Gamma Ltd, then the total fixed costs are

Current fixed production costs £700,000, plus
Fixed selling & distribution costs (reduced from £400000 to) £250,000, plus
Additional investment in assets, Depreciated at £400,000 p.a.

This sum equals the £1,350,000 figure on p108

jaspreet

Hi thanx for the reply
How did u add additional asset and dep?i added fixed cost and selling expenses and profit ?is it wrong to add profit?

jaspreet

Can u explain how u add additional investment and depreciation?

Adele69

Not sure why you would add Profit .

The question gives you a particular Depreciation amount for the NCA so we know this is fixed and not a diminishing balance

jaspreet

Fixed cost 700000 add selling and distribution cost 150000add depreciation 400000 Add three together gives me 1250000
Not 1350000

jaspreet

Sorry could u let me know how u get 1350000 plz I have exam tom.

Adele69

Selling & Distribution FC is £250,000 Its not the variance from last year to this year, just paraphrased that line from the question since you didn't add any information