ACCA考试科目 P4 Dec 2010 Q 1 Corporate reconstruction？

ACCA考试科目 P4 Dec 2010 Q 1 Corporate reconstruction？



Hi there,
In this question part(c) management buyout, I don’t understand why the model answers pro

rata thethe costs on the basis of two-third. 2/3
What i understand fromthe passage which says that the parts division is half the size of

the fridgedivision….. So, i would think that it should be one-half, 1/2 instead oftwo-

third.
Can anyone explain whyit used 2/3 instead of 1/2?
Thank you so much  

Well the complete business consists of both the parts and the fridge division right? and parts division is 1/2 the size of fridge division?

So if you look at it, the complete organization is:
33% Parts
66% Fridge


When pro rata is applied, 2/3 or 66% (Fridge business) is applied on the TOTAL amounts of the organization, leaving out the 1/3 or 33% (Parts business).


The parts business still is 1/2 or 50% of the fridge business. I.e. 33/66 = 50%