Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

We hope you are all safe and well and if you need us we will be here. 💚

Hi,
Can someone please help me calculate the energy cost for the alternative scenario? • Hi Hazel,

These are my workings:

Selling price per unit £12 * 1.05 (increase by 5%) = £12.60
Sales volume: 80,000 * 0.92 (8% decrease) = 73,600
Sales revenue: 73600 * 12.6 = 927,360
Material: 392000/80000 = 4.9, then * 73600 = 360,640
Labour: 224000/80000 = 2.8, then *73600 = 206,080
Energy: £43,000 = 107.5%. So to get 100%: (7.5/107.5) x 43000 = £40k. Then *1.1 = £44k.
Depreciation: 80,000/6000 = 13.3 , so 14 steps.
New sales volume of 73,600 / 6000 = 12.26, so 13 steps.
13 steps * (£42,000/14) = £39,000

Rest should be self explanatory.

Hope this helps

Regards
• In the first draft the energy cost is 100% + 7.5% alliwance, therefore
£43000/107.5=£400 per 1 %

We are then told that in the new draft the price rise will be 10%, so
110x400=£44000
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%