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Costs and revenues

UncleboobotUncleboobot Registered Posts: 43

Maybe it's because I am tired and it's late but I can't seem to figure this out. Below is a screen shot of a question complete with the answers which have been provided in red.

I can't for the like of me work out how £2904.00 is the correct answer to part b). Maybe I'm misunderstanding the question, maybe there's a mistake in the answer. Part a) I have answered no problem, but I have part b) down as £1531.20 calculated as (£8 x 16.50%) x 1,160.

I'd be grateful for your help, thank you


  • N4TN4T AAT Student Posts: 191

    I'm not sure where you got 1160? Are you reading one of the figures incorrectly?

    14,200 - 12,000 = 2200 , the target is exceeded by 2200 units, therefore bonus is 2200 x (£8 x 16.5%) = £2904
  • N4TN4T AAT Student Posts: 191
    I just saw the 1160 as the total hours and see why you have used this.

    The bonus RATE has been worked out based on 16.5% of the hourly rate of £8.

    However this bonus is dependent on the units produced in excess of the target and not the total hours worked.
  • UncleboobotUncleboobot Registered Posts: 43

    I guess this does make sense now....after some sleep :)

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