Task 2.2 what was the profit on sub contracting

Task 2.2 what was the profit on sub contracting

I made it there would be a lost profit of £32 per unit, by adjusting the april budget figures to one standrd unit working out the contribution per unit, which was higher than the contribution if we sub-contracted, therefore saying it would be a bad idea, i did nothing with the £12000 saved from not holding stocks, just put a note in the report to say this would happen as well. By reading all of the opinons on this site no-one seems to have done it this way. Bit confused still, even to explain myself!!!!!<BR>I felt the whole exam paper was worded completly different to what we had before, but am feeling reassured from reading comments that I was not the only one!!!!!!

Task 2.2 what was the profit on sub contracting

<br><br><< <i>I based my workings on 850 units produced and sold, and took the subcontracting cost as £180 x 850 =£153000. I took this off the T/O of £187000 to get a revise contribution of £34000. Added this to model F's contribution (whatever that was) then took the £78000 off the sum of the original fixed costs for F and H. I took the revised fixed costs off the revised contribution and this left me with exactly £8000 additional profit for the month and I added another £1000 on for 1/12 of the savings from no storage costs for H. With this I suggested subcontracting the work.<BR><BR>God knows if its right or wrong, but it was my 4th attempt in 1 hour!<BR><BR>Does the same examiner write the DFS? I hope not.</i> >><br><br><BR><BR>Oh my God, that's exactly what I did, got £14k profit + £1k savings on stock, this compared to £6k revised profit for the original one. Well mate, at least that's two of us done the same thing, when I left I couldn't imagine anyone could possibly have written the same rubbish I did!

Task 2.2 what was the profit on sub contracting

<br><br><< <i>[q when I left I couldn't imagine anyone could possibly have written the same rubbish I did!</i> >><br><br><BR><BR>Does that make me feel better? Not really!!<BR><BR>Good luck for DFS on Wednesday.</i> >><br><br><BR><BR>Well I looked at it for about half an hour mesmerised before I wrote anything, then changed my mind halfway through. It made sense to me at the time and still does to some extent, two of us out the few who post on here got the same so it must make some sense. <BR><BR>Fingers crossed anyway.

Task 2.2 what was the profit on sub contracting

You guys have just saved me from throwing in the towel regarding these exams until December. You have answered just the same as me and too be honest it was the only logical answer that I could see until i logged on here at about 3.00 this afternoon and no one had that, they had the opposite.<BR><BR>I had really decided that as I was doomed to resit this exam then there was no hope for DFS and went to sleep for the afternoon!<BR><BR>Well all I can say now is thank you for having the same aswer as me, be it right or wrong!<BR><BR>I supose I had best get on to some DFS revision pronto!<BR><BR>I do have to say though that I did all four of the Osborne practace papers and all of the past papers twice and this exam was nothing like any of them, it didn't even have a reconciliation statement in section 1! I have answered all of the questions in the most logical way that I could and too be honset no extra amount of revision would have prepared me for that.<BR><BR>That is PEV 'put too bed' for me now until August.<BR><BR>Good luck to all who still have exams.

Task 2.2 what was the profit on sub contracting

Well that's 5 of us got the same conclusion.<BR><BR>I suddenly feel so much better, although I think the beer helped last night as well!

Task 2.2 what was the profit on sub contracting

I also got £9000.00 extra profit for sub-contracting for the month.<BR><BR>However I did not suggest to sub-contract mainly because the company would have no control over production and the long term benefits of the company had to be considered.<BR><BR>What if the sub-contracting company had understated the price of £180.00 per stove. They would have control as they were employing all our production staff, and could increase the price. Also who would produce the stoves for us if they went into liquidation.<BR><BR>Have no idea if this is right, would like to know if anyone else thought the same.