02-05-2010, 03:50 PM
hi,
let 140000=x
So fixed cost after upto 11000 units is
x+10%x=154,000
x+0.10x=154,000 (10%/100=.10)
1.10x=154,000
x=154,000/1.10
X=140,000
your suggested answer matches mine. Its a basic concept that cost has risen to 10% of 140,000 and not 10% of 154k,. the right approach is to find out the 10% of 140k and then add it.but as 140k is the missing figure, I simply worked backward. As I have done above and same as u did with another approach but all leads to the same answer.
Just grab the concept.
let 140000=x
So fixed cost after upto 11000 units is
x+10%x=154,000
x+0.10x=154,000 (10%/100=.10)
1.10x=154,000
x=154,000/1.10
X=140,000
your suggested answer matches mine. Its a basic concept that cost has risen to 10% of 140,000 and not 10% of 154k,. the right approach is to find out the 10% of 140k and then add it.but as 140k is the missing figure, I simply worked backward. As I have done above and same as u did with another approach but all leads to the same answer.
Just grab the concept.