Question help budgeting!!

cbuttery1991
cbuttery1991 Registered Posts: 47
in Management Accounting: Budgeting
Can anyone help with the attached question? I cannot see where they’ve got their answers from!!

Comments

  • hal978
    hal978 Registered Posts: 197 Dedicated contributor 🦉
    Manufactured units = Required units / 0.97
  • cbuttery1991
    cbuttery1991 Registered Posts: 47
    Thank you, I don’t ewlaly understand why. I just thought you would Times the required units by 1.03 to add an extra three percent on to the required units?
  • jemholmes
    jemholmes Registered Posts: 2
    It's because the Manufactured units = 100% whereas the Required units only = 97%

    So divide the required units by 97 then x by 100 - or the above calc, required units / 0.97
  • cbuttery1991
    cbuttery1991 Registered Posts: 47
    Thank you!!

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