I need explanations for the following questions.
May/June 2010 - Paper 31
Question 5a of Section A - answer is listed as 60 and 56 on the ms..cant figure out how.
Heres the link to the paper
http://xtremepapers.net/CIE/index.php?dir=International%20A%20And%20AS%20Level/9707%20-%20Business%20Studies/&file=9707_s10_qp_31.pdf
Please reply as soon as possible!
well this took me a while to figure out
To get da ans u start from the last branch of one of the options , say option 2
0.8 x 40 = 32
0.2 x 20 =(04)
=28
Next(u go to da next brance)
0.8 x(28 +72) = 80
0.2 x(20) =(04)
= 76
76 is the possible return of the option 2 which incurs a start up cost of 20.
so 76-20 = 56.
you do the same for the other option u get ans 60
