At the Moslund Plant, the assembly line consists of 3 conveyor belts.

I am also confused about this...­

Question 3.

1. The assembly line generated a profit of $16,500,000. -Take the profit from year from year 10 tab, 1.1($15,000,000) = $16,500,000. YES is correct

2. Total output from the assembly line increased by 25,000 units over the total output for Y10.- Take total outputs from year 10 tab, third tab shows it to be 5% greater, so the Y11 output .05(250,000) = 12,500 NO is Correct

3. Administrative unit restructuring accounted for 1% of the total profit. While the percentage increase in profit from Y10 to Y11 due to administrative unit restructuring is provided, there is no information indicating what portion of the total profit the administrative unit restructuring contributed in either Y10 or Y11. NO is correct. Be careful with the verbiage on this question it is tricky

chetan2u could you please provide your insight on Q3 option 1?The assembly line generated a profit of $16,500,000. why the cost to implement the project was not subtracted?

KarishmaB can you please explain question no.3 1st and 3rd statements ?

"Administrative unit restructuring accounted for 1% of the total profit. "

Since we dont know the Administrative unit restructuring amount for Y10 , so it is not possible to determine the percent increase amount. Is my reasoning correct ?

For the 1st statement "the assembly line generated a profit of $16,500,000. "
why are we not subtracting total cost to implement ?

Question 3


ID: 100297
For each of the following statements about the Moslund Plant assembly line in Y11, select Yes if it is true based solely on the information provided. Otherwise, select No.

The assembly line generated a profit of $16,500,000.

TAB 1: In Y10, the Moslund Plant assembly line had an output of 250,000 units and generated a profit of $15,000,000.
TAB 3: Increase in profit in Y11 as a percentage of profit of Y10 is 10%. This means profit in Y11 is $16.5 million. All costs have already been accounted for when profit is calculated. We are not talking about revenue, but profit. To get profit, we already account for costs. We are given that total increase in profit is 10%. This means that it has become 16.5 mil

Select YES


Total output from the assembly line increased by 25,000 units over the total output for Y10.


TAB 3: Total output increased by 5%. The outout of Y10 was 250k units. 25,000 units is 10% of this, not 5%.

Select NO


Administrative unit restructuring accounted for 1% of the total profit.


Administrative unit restructuring profit increased by 1% as compared with Y10 profit. It was not 1% of Y11 profit. Since Y11 profit was different from Y10 profit, the percentage would be different. Hence

Select NO

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https://youtu.be/hdCH-U1p8dw
https://youtu.be/xL631VXGjSg
https://youtu.be/2cY39qHenc0
https://youtu.be/bql1Mw0gl_A

In the tab 3, what does "resulting increase in output for Y11, as a percent of Y10 output " mean ? kindly elaborate .
KarishmaB

It means that due to modernization, by how much did Y11 output increase as a percent of Y10 output.
So say Y10 output was 100 units. Y11 output increased by 5% overall which means Y11 output was 105 units.

For Q3-Part1 regarding profit/cost calculations:
When profit is calculated, it takes into account the costs.

Say Profit Y1 1 is 10 and profit increase for year 2 is 20%. How did we calculate this?
(Profit Y2- Profit Y1)/Profit Y1 * 100 = 20%
which in turn came from
Profit Y2 = Rev Y2 - Cost Y2

The cost is already accounted for.