MANAGEMENT IN DECISION AND CONTROL

HELLOW,CAN SOMEONE CORRECT ME ON THE ATTACHED IF I WENT WRONG

Comments

  • Pian32
    Pian32 MAAT Posts: 471
    You have gone wrong on the fixed cost line.

    All fixed costs directly related to the units are saved costs because if outsourced they won't be incurred. That will also affect the last line by the same amount.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL
    SBR
    ATX - Planned Dec 21
    APM -
  • Mannaesi
    Mannaesi Registered Posts: 80
    @Pian32 you mean for product b and c???and i thought i stated that we be saving 5000 and 6000???what do you mean bro,for product a we will not be outsourcing so i think its extra fixed cost of 1000
  • Pian32
    Pian32 MAAT Posts: 471
    In your answer savings are in (_) . The fixed cost line asks for savings if you outsource so all of them are savings. You then need to add them together to get the total cost/(saving)
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL
    SBR
    ATX - Planned Dec 21
    APM -
  • Mannaesi
    Mannaesi Registered Posts: 80
    @YAH IN MY ANSWER SAVINGS ARE IN(-)SO FOR PRODUCT B AND C,WE BE SAVING 5000 AND 6000 AND THAT IS WHY THY ARE IN BRACKETS...AM NOT SURE IF I GET YOU @Pian32 PLEASE EXPLAIN TO ME USING FIGURES IF POSSIBLE DRAW SAME TABLE AS MINE PLEASE
  • Pian32
    Pian32 MAAT Posts: 471
    In your answer they're not in brackets so down as a cost.
    A B C
    Unit Variance: 14 17 7
    Unit variable out: 12 21 10
    Annual extra cost/(saving):(2000) 8000 12000
    Annual Fixed cost/(saving):(1000) (5000) (6000)
    Total extra annual cost/(saving):
    (3000) 3000 6000

    A saves 3000
    B costs 3000
    C costs 6000
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F5- Passed Dec 2020
    F6- Passed Sep 2020
    F7- Passed June 2021
    F8 - Passed Sep 2021
    F9 - Passed June 2021

    SBL
    SBR
    ATX - Planned Dec 21
    APM -
  • Mannaesi
    Mannaesi Registered Posts: 80
    oohkay i get you bro its a mistake they should be on brackets thanks and the 1000 for product A should be the one out of bracket.

    Thank you so much @Pian32 will also correct the annual cost/savings,really appreciate it bro
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