Osborne Workbook Activity Question 5.4.
scottpattison1974
Registered Posts: 5
Hi Ladies and Gents,
I am hoping that someone can help me with this. I am having issues with the Energy value for the alternative scenario. The assumption is that the Energy cost is semivariable, with a fixed element of £48,000, with the alternative scenario basis that there is an increase in only the variable cost of Energy of 3%.
The First scenario Energy is £124,000. My calculation is £124,000  £48000 (fixed cost) to give £76000. + 3% to give £78280 then add back on the fixed cost of £48000 to give a final answer of £126280. However the answer is 122366... Please help!!
(I have included a photo of the question below)
TIA
I am hoping that someone can help me with this. I am having issues with the Energy value for the alternative scenario. The assumption is that the Energy cost is semivariable, with a fixed element of £48,000, with the alternative scenario basis that there is an increase in only the variable cost of Energy of 3%.
The First scenario Energy is £124,000. My calculation is £124,000  £48000 (fixed cost) to give £76000. + 3% to give £78280 then add back on the fixed cost of £48000 to give a final answer of £126280. However the answer is 122366... Please help!!
(I have included a photo of the question below)
TIA
0
Comments

OK I figured out the answer. Thanks0