2007 Exam, Q10, Unit Labor Cost Change %

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happyking02's picture

did you guys find the answer strange?

I would do as below:

Circle “decrease”;
Then, in explanation - “increase in labor cost will decrease operation margin”

I do not know why the answer wrote in the oposite way:
Circle “increase”;
Then, in explanation - “decrease in labor cost will decrease operation margin”

I guess we have to have faith that the grader will be flexible???

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mumukada's picture

i think it’s because you were supposed to refer to the table..don’t have the exam in front of me..but i think according to the forecast …the labor cost was decreasing…as a trend…

happyking02's picture

i think you are right - reading too much and didn’t read into the numbers at all… :(

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