AAT Level 4 question help

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Aliyah97
Aliyah97 Registered Posts: 22 New contributor 🐸
in Management Accounting: Budgeting

would someone be able to help me work out this question with workings please

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  • bigevy08
    bigevy08 Registered Posts: 29 Regular contributor ⭐
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    Hi Aliyah,

    Contribution per unit is Selling Price less Marginal Cost, so for AA1 this is 45 - 28.50 = 16.50

    Kgs needed is calculated by taking the direct materials cost and dividing by cost per kg. Again, for AA1 this is 18 / 6 = 3.

    Total kg required is kg needed per unit times units of production. for AA1 this is 3 * 10,000 = 30,000kg.

    I'll leave BB2 and CC3 for you to do :)
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