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AnswersFundamentals Level Skills Module, Paper F5 Performance ManagementMarch/June 2016 Sample AnswersSection B1(a)BatchesUnitsPriceTotal variable cost Total variable Fixed costsTotal Profitper unitrevenueper unitcostscost$$$$$$$11,0002020,00010 0010,00010,00020,000022,0001836,0008 8017,60010,00027,6008,40033,0001648,0007 8023,40012,00035,40012,60044,0001352,000 6 4025,60012,00037,60014,40055,0001260,000 6 4032,00014,00046,00014,000 Therefore Jewel Co should import and sell four batches (4,000 units) of headphones since at this point it will make thegreatest profit: $14,400 for the month.(b)The algebraic model requires several assumptions to be true. First, there must be a consistent relationship between price (P)and demand (Q), so that a demand equation can be established, usually in the form P = a bQ.

Fundamentals Level – Skills Module, Paper F5 Performance Management March/June 2016 Sample Answers Section B 1 (a) Batches Units Price Total Variable cost Total variable Fixed costs Total Profit per unit revenue per unit costs cost

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