Scribd Logo
Importer

Bienvenue sur Scribd !

  • UKMM1043 Basic Economic, Accounting and Management May 2012 Question

    Transféré par

    Joson Chai
    150 vues2 pages
    The document provides a budget for a new microwave oven model including variable costs, fixed costs, and projected production and sales. It then lists 4 suggestions from department managers to improve budgeted profit, and asks to calculate the net profit and break-even point for each suggestion, as well as the selling price required to achieve a target profit under the 4th suggestion.

    Description originale:

    Sample Question.

    Titre original

    UKMM1043 Basic Economic, Accounting and Management May 2012 Question

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Formats disponibles

    DOC, PDF, TXT ou lisez en ligne sur Scribd

    Avez-vous trouvé ce document utile ?

    Ce contenu est-il inapproprié ?

    Signaler ce document
    The document provides a budget for a new microwave oven model including variable costs, fixed costs, and projected production and sales. It then lists 4 suggestions from department managers to improve budgeted profit, and asks to calculate the net profit and break-even point for each suggestion, as well as the selling price required to achieve a target profit under the 4th suggestion.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOC, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    150 vues2 pages

    UKMM1043 Basic Economic, Accounting and Management May 2012 Question

    Transféré par

    Joson Chai
    The document provides a budget for a new microwave oven model including variable costs, fixed costs, and projected production and sales. It then lists 4 suggestions from department managers to improve budgeted profit, and asks to calculate the net profit and break-even point for each suggestion, as well as the selling price required to achieve a target profit under the 4th suggestion.

    Droits d'auteur :

    Attribution Non-Commercial (BY-NC)
    Téléchargez comme DOC, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 2

    [Total: 40 marks] Question 1

    You are employed by Dynamics Sdn Bhd which manufactures microwave ovens for the consumer market. The company has developed a new model of a microwave oven with the following budgeted data. ariable cost per unit Direct materials Direct labour ariable overheads The draft budget for the following year is as follows& 'roduction and sales *i+ed costs& 'roduction -dministration Selling and distribution /ontribution ANSWER: 390,000 (NET PROFIT) The Board of Directors has re0uested for improvements on the budgeted figures and the departmental managers have come out with the following suggestions. 1i2 The sales manager suggested to reduce selling price by 1(3. 4e e+pects sales 0uantity to increase by an e+tra 5(3 unit. The purchasing manager has said that the materials re0uirements will increase correspondingly and a materials price reduction of %.,63 could be negotiated. 7ith this additional output) fi+ed production costs would increase by !"5()(((8 administration by !"6)(((8 and selling and distribution by !"1()(((. 9ther costs would remain unchanged. ANSWER: 402,000 (NET PROFIT) The e+port manager has suggested that if the company increased overseas marketing by !"16)((( then e+ports would increase from 16)((( units to 1:)((( units. 7ith this suggestion) distribution costs would increase by !"1,)((( and all other costs would remain unchanged. ANSWER: 39 ,000 (NET PROFIT) The marketing manager has suggested that if an e+tra !"$()((( were spent on advertising) then sales 0uantity would increase by ,63. The purchasing manager has indicated that in such circumstances) materials cost would reduce by !"(.5( per unit. 7ith this suggestion) fi+ed production costs would increase by !",6)(((8 administration by !"$)(((8 and selling and distribution costs by !":)(((. -ll other costs would remain unchanged. ANSWER : !4",!00 (NET PROFIT) The managing director believes the company should be aiming for a profit of !"$#%)(((. 4e asks what the selling price would be per unit if marketing were increased by !"6()((() this leading to an estimated increase in sales 0uantity of 5(3. 'roduction fi+ed costs would !" # $ $ 1% %()((( units !" ,%()((( .()((( 1(()((( #$()(((

    1ii2

    1iii2

    1iv2

    ,
    increase by !"%:)((() whilst material prices would decrease by %.,63 per unit. -ll other costs would remain unchanged. ANSWER: NET PROFIT (4#",000)

    R$%&'r$(: 1a2 Taking each suggestion independently) compile a profit statement for option 1i2 to 1iii2) showing clearly the net profit and contribution in each case) as well as its break;even point in units. 15( marks2 1b2 *or suggestion 1iv2) calculate the selling price per unit as re0uested by the managing director. 11( marks2

    <Total& $( marks= <Total& 5( marks=

    Vous aimerez peut-être aussi