Required:(iii) A firm of consultants has offered to undertake a study on behalf of Envico

16 查阅

Required:

(iii) A firm of consultants has offered to undertake a study on behalf of Envico Ltd which will provide perfect

information regarding seminar attendance during the forthcoming year.

Advise the management of Envico Ltd with regard to the maximum amount that they should pay to

consultants for perfect information regarding seminar attendance and comment briefly on the use of

perfect information in such decisions. (5 marks)

参考答案:

(iii) If attendance = 100 then management would opt for room size A which would produce a contribution of ￡832,000 x0·2 = ￡166,400.If attendance = 200 then management would opt for room size B which would produce a contribution of ￡2,163,200x 0·5 = ￡1,081

ACCACAT