Messed up % margin of safety

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I some how got the working out for breakeven point wrong in my head!!<BR><BR>I thought it was Budgeted Sales Unit - Breakeven Point divided by Breakeven point x 100.<BR><BR>And ended up with 20% & 30% as my figures.<BR><BR>Anyone else as thick as me?

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Messed up % margin of safety

    The formula is output - break even divided by output x 100 whih equalled 16.67 and 23.08.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Messed up % margin of safety

    ERRR no, I dont think i would have come up with that formula ....<BR>But I am thick in the sense, I uncluded direct labour in my overhead absorption rate to get £30.77<BR><BR>*cries*<BR><BR>If I fail, i think it would be in section 1 and not section 2.<BR><BR>In section 1 i got the overhead absorption rate question wrong, and did not attempt the under recovery question. How much % of section 1 do you think these tw questions accumulated to?!?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Messed up % margin of safety

    I completely messed up on the same thing. In all the past papers and test papers we've done, % margin of safety hasn't come up once, so it was a vague memory from a distant class. I ended up just writing "I haven't got a clue" (or words to that effect) on the answer, although I now wish I'd just explained the term Margin of Safety rather than worrying so much about the % aspect. <BR><BR>Still, if that's the only thing we messed up on, I'm confident of a pass. Looking at the other Forum messages, it looks like you only need 60-70% on each section to pass, and that part of the question alone couldn't possibly constitute more than 6-8%..... I hope! <img src="i/expressions/face-icon-small-smile.gif" border="0">

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