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# CSTR sample assesment 2 (Costs and revenues AQ2013)

Slackpants
DerbyshireRegistered Posts:

**10**
Please help!!

I have been going out my mind trying to figure out the answer for 1.6 in sample assessment 2. I have managed to get the first 3 answers correct but then I hit a brick wall... I have checked the remaining answers on the "answers doc" but I cannot seem to get back to those figures no matter what I do?! Thanks!! x

I have been going out my mind trying to figure out the answer for 1.6 in sample assessment 2. I have managed to get the first 3 answers correct but then I hit a brick wall... I have checked the remaining answers on the "answers doc" but I cannot seem to get back to those figures no matter what I do?! Thanks!! x

0

## Comments

191So you have already worked out:

a. Sales revenue per mile £13.00

b. Variable cost per mile £3.10

c. Fixed cost per mile (contract 15,600 miles) £3.50

d. Total cost per mile (contract 15,600 miles)

TC = VC + FC

Taking your answers from b&c,

TC per mile = £3.10 + £3.50 = £6.60e. Profit per mile (contract 18,200miles)

Profit = Sales Revenue - Total Cost

SR = 18,200 x £13* = £236,600 (*use answer from a.)

VC = 18,200 x £3.10* = £56,420 (*use answer from b.)

FC = £54,600 (given in question)

Therefore Total cost is £56,420 + £54,600 = £111,020

Total profit = £236,600 - £111,020 = £125,580

Hence, Total profit per mile based on 18,200 miles is

£125,580 / 18,200=£6.90Hope this helps.