[espie]

I passed on first attempt with 60% – cannot thank you enough John!
Self study using OT lectures and notes, Kaplan text and practice kit, and BPP practice kit.

[espie]

Thank you!

[espie]

I think I know where I went wrong – didn’t read the Kappa question carefully and mixed up the input kgs and the 100kg of Omega. From the way I understand now, there is no material waste. Standard input in total is 120 kgs per unit and ‘100 kg of Omega’ is to be treated as 1 unit like it would be in any other standard question.
Is that correct?

[espie]

Very clear, thank you!

[espie]

Many thanks John! Very clear now.

[espie]

Thanks John!

[espie]

Hi John, with regards to point 2 in your response, why do you compare actual results with last year instead of budget this year?

[espie]

Additional information given in the question:
Cardio Co has recently received a request from a customer, Heart Co, to provide a one-off order of fitness machines (T,C and R) in excess of normal budgeted production for 2016. The order would need to be completed within two weeks.

[espie]

December 2015

[espie]

John, in the following sub-question 5:

Which statement correctly describes the treatment of general fixed overheads when preparing the Heart Co quotation?
Answer is: The overheads should be excluded because they are not incremental costs.

I don’t understand why these costs are excluded when for the calculation of margin of safety (sub-question 3) these were included.

[espie]

Apologies, didn’t realise there was a separate forum.

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