exam level 4. Management accounting: Budgeting question
Connieciwa
Registered Posts: 3 New contributor 🐸
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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