PEV Dec 03 - Aspex Tech Ltd - Confused

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:08AM in AAT student discussion
Hi<BR><BR>Please could someone help me with task 2.2, revised total contribution? <BR><BR>Why would you change the original contribution amount by the new index instead of calculating it by turnover - new material cost - new labour costs?<BR><BR>For some reason i just can't seem to get my head round it to understand.<BR><BR>Many Thanks<BR><BR>P.s. Good luck to everyone.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Dec 03 - Aspex Tech Ltd - Confused

    I method:<BR><BR>new turnover: £17556000<BR>less:<BR>new material cost 7392<BR>new labour cost 4620 £(12012000)<BR>Total new contribution £5544000 <BR><BR>II method:<BR>previous contribution per unit £14<BR>less: reduction in selling price £(2)<BR>There fore new contribution per unit is £12<BR><BR>There fore the new contribution is £12 * 462000 Zetas = 5544000<BR><BR>I guess this would be of some help to you.<BR>all the best.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV Dec 03 - Aspex Tech Ltd - Confused

    Thanks for help. I will have another look tonight.<BR><BR>Regards

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