# exam level 4. Management accounting: Budgeting question

Connieciwa
Registered Posts:

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Hi there, is there anyone can help me with the workings for the following question:

X Lts requires 14,000 kg of material Q. Material Q has a list price of £2 per kg.

Quantity discount in the table below:

Quantity purchased Discount %

First 1,000 kg receive a discount of 2%

Next 1,000 kg receive a discount of 3%

Next 3,000 kg receive a discount of 4%

All further purchases receive a discount of 6%

Calculate the total amount payable after all available discount have been claimed.

This is my workings but it does not match the given answer.

Answer should be £26048.40

Anyone knows the correct worings? Thank you inadvance for your help.

First 1000 kg

1000kg x (£2 x 98%)= 1960

£40 discount

Next 1000 kg= £2000: 3% discount= £60 discount

1000kg x (£2 x 97%)= £1940

£60 discount

Next 3000 kg

3000g x (£2 x 96%)= £5760

£240 discount

£14000 – 5000 kg= 9000 kg

9000 kg x (£2 x 94%)= £16920

£1080 discount

£28000 - £1420 (discount)= £26580????

Correct answer= £26048.40

X Lts requires 14,000 kg of material Q. Material Q has a list price of £2 per kg.

Quantity discount in the table below:

Quantity purchased Discount %

First 1,000 kg receive a discount of 2%

Next 1,000 kg receive a discount of 3%

Next 3,000 kg receive a discount of 4%

All further purchases receive a discount of 6%

Calculate the total amount payable after all available discount have been claimed.

This is my workings but it does not match the given answer.

Answer should be £26048.40

Anyone knows the correct worings? Thank you inadvance for your help.

First 1000 kg

1000kg x (£2 x 98%)= 1960

£40 discount

Next 1000 kg= £2000: 3% discount= £60 discount

1000kg x (£2 x 97%)= £1940

£60 discount

Next 3000 kg

3000g x (£2 x 96%)= £5760

£240 discount

£14000 – 5000 kg= 9000 kg

9000 kg x (£2 x 94%)= £16920

£1080 discount

£28000 - £1420 (discount)= £26580????

Correct answer= £26048.40

0

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