pev same thoughts

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
found pev ok, section 1 went fine. must say found comment on this forum helpful before exam, many thanks to you all.<BR>didn't like 2.2, didn't really know what they were asking for. all i did was <BR><BR><BR> sales price of i think 850 H's less cost of the other company making them=profit<BR><BR> then add the savings from the overheads/ stock holding savings to give gross profit<BR><BR>i think i have blown it though as i thought as they were not making H's there would not be any overheads for the H range, as overheads were split between the two products in the p & l. I did write in my report the difference in profit and calculated the difference in GPM. Using this comparison I voted for the proposal. Looks like this question will let me down because i felt ok about all the other questions, but i need to pass both parts. Lets hope eh!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    pev same thoughts

    I'm hoping that you gain points for explaining your logic as I think I completely messed up on that question as well. I voted for the proposal to subcontract as well. If this is the only thing we had problems with, I think we should be ok.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    pev same thoughts

    i worked this question out based purely on costs i.e 1000 X £180 =£180000 les £79000 less £1000 which gave a cost of production of £101000 compared to £102000 but there was a favourable variance of £19000 partly due to labour hours being less than planned. Therefore i rejected the proposal. Anyone else get the same?

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