AAT Practice Assessment 2 for CRDC- Task 1 A

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loshie
loshie Registered Posts: 4 New contributor 🐸
in AAT Level 4 (Level 8 in Scotland)
can anyone help me with this question?

BGC charges £500 per day for consultancy support.

They sign a contract with HLMP 1 Jan X1 for 4 months with plan to charge 50 days support. The agreed rate was £400 per day subject to Minimum of 40 days support.

total of 25 days were worked 1Jan- 31 March. Invoiced amount to date is £10,000 during this time they provided 13 days support,
How much should they invoice the client for April?

The answer is £6000, can anyone explain how they get this answer?

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  • loshie
    loshie Registered Posts: 4 New contributor 🐸
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    anyone?????? x
  • welshwizard
    welshwizard Registered Posts: 465 Dedicated contributor 🦉
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    Total invoice for period should be 40 days x £400 = £16,000.
    As £10,000 has already been invoiced, only £6,000 remains
    As the contracted minimum is 40 days for the period, the 25 & 13 days are red herrings.

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