level 4, synoptic assessment task 4

Options
genesta
genesta Registered Posts: 26 Regular contributor ⭐
in Synoptic assessment - Professional
Hi.
I am preparing for exam in February. Not fun.. :)
The 1st mock assessment from aat site, task 4. Please help if you can.
The issue I have is: I have no idea what to do here. The funny thing is - I knew time ago..
The contribution calculations suddenly doesn't work for me.






Here are the answers.




Thank you, if you can explain me a bit of this.













Comments

  • bethfarmer121
    bethfarmer121 Registered Posts: 1
    Options
    The marginal cost per unit is worked out like this

    18 x 1.15 = 20.70 (this is because it is the direct costs and the variable portion of the overheads which is 15% of the direct costs)

    To undercut the competition is the competition price (from the spreadsheet given in the question) minus the marginal costs (21.00-20.70 = 0.30) then multiply by the number of units (0.30 x 250 = 75)

    You can repeat the above process for the market price and spreadsheet price
  • genesta
    genesta Registered Posts: 26 Regular contributor ⭐
    Options
    Thank you! Somehow i sorted it. :)
    Sorry for being late with reply.
    Thank you a lot!

Categories

Privacy Policy