Forum Replies Created
- Posts
This session I attempted F4 and F5, passed in both, and for F5 all I did was listen to Opentuition lectures and practice questions and so I would like to thank the F5 tutor John Moffat and everyone working on his website.
Ok I got some notes of the 2011 BPP book, and here’s what I understood,
For the breakeven chart on the X axis I give the units is in number of mixes for example BEP at 6000 units (which is 6000 mixes of X:Y:Z at 1:2:3 for example)
And the other two ways is isimple cumalative revenue of each by order of again highest C/S ratio
Finally, as a percentage of revenue was I think simple.
Coming to the PV chart it seems that only one way which is plotting each product seperately in order of C/S ratio (highest first) as you mention poo 2503 but what I do not get is how can I find the profitability of each product seperately provided the fixed costs are gicen in total?
To anyone who would like to clarfiy this please affirm if my understanding so far of BEP is correct and the answer for the PV chart profitability.
Thank you poo2 503 and to anyone who helps.Hi,
Well you’re supposed to already have the contribution per unit for each product, usually two, for example product A and B give contribution per unit of $2 and $3 respectively, after drawing all the constraint lines on the graph what you is just assume a contribution figure, as crazy as it sounds just guess a figure anything you want let it be $500 or $100000 (OR ANY OTHER FIGURE DOES NOT MATTER), but try to keep the figure within the range of the graph as you’ll have to draw a line on it.
Try to find the combination for that contribution using your two product like in A and B is it is $10000, assume A=0 then 10000 = 2A + 3B, 10000 = 0+3B, find B
B=10000/3 = 3333
using the same method assume B=0 find A , you’ll get A=5000 ok now you have two points A=5000 and B=3333, join them on the graph usually with a broken line to recognize it. The opoint is no matter what contribution you guess the line you draw will always be parllell to any other line you draw on any other contribution it contribution is $5000 the line will be closer to the point of origin but parllell to the $10000 line. It would be better if you assume a contribution small enough to be under all the contraints, now what you do is move away from the origin parllell to the broken line till you reach the maximum last possible point within the contraints which should be the optimal point.I am not sure if this was clear, i really hope so but there is a lecture on this precsiely on the website it should really very much help, i got it from there anyway so 🙂
Anyway hope you got it
Thank you very much Mr. John.
Now you have helped me alot, not only in value of information but F5 as a whole, but I’d hate to ask one final thing (hopefully) and of course if you can help.
I have understood everything but one thing is left of the new material I know how to calculate the breakeven units and revenue and using the C/S ratio for multiple products but I could not get anything on how to plot the graphs of BEP and PV chart, so if it possible only to point me something on how to draw the diagrams or anything. I perfectly know how to draw single product charts just never caame accross multiple ones. Problem is I have last session’s books so no new material.
Anyway if you can help, it would be very much appreciated and of course thank you.
P.S. is that all needed for value of information? and when calculating variable overhead variances should I only consider hours worked in case of expenditure variance and where idle time is present ?
Well to be honest I have been using last session’s books so I only found out about perfect information and decsision trees a couple of days ago.
Anyway, well I am not sure although I got somethin from the decision trees, I know nothing about perfect information.
Am guessing perhaps if it possible and no trouble to you perhaps how to calculate the value of perfect information??
because such a question is there in opentuition notes but nothing in the answers of it, and although Mr. John posted the direct link to the lecture I have watched that lecture before it brilliantly explains maximax maximin regret and EV but sadly nothing about perfect information……..
Perhaps anything would help, it would be a shame if it came in the exam and i could not write anything.
And of course thanks in advance.Hi,
Economies of scale is the concept that as a business’ scale of production and operation grows, the average cost incurred per unit of operation falls. Kind of bigger, cheaper.
Assume that a business incures a cost of $1000 per devlivery. If I send 500 units then average cost is $1000/500 = $2. But if I send 1000 units a load then average cost is $1000/1000 = $1. This is always in relation to fixed costs remember, variable costs increase with volume.
Similarly if I buy 1000 units atime instead of 500, the supplier might give me a discount and so average cost falls. The case goes the same for all fixed costs, just thing of ways that a big business could take advantage of its size.
Anyway I hope that clarified the issue, my problem is perfect information, John posted that there is a lecture on it, so is there any chance you know where I can find this lecture, cause I could’nt find it.
I too need clarification about the perfect information as in the notes the question is there but no answer for it and sorry but I cannot find the lecture so please can you help know where is the lecture or atleast anything about perfect information
it would really help if you would post the direct url link to the lecture.
Thanks in advance
Thank you for replying and your work on opentuition in general.
Actually part of my confusion regarding Dafen Tinplate was because of the Sidebottom’s case. Because as I read in part of the facts on Dafen Tinplate “The new article was not restricted to acquisition of shares on specific grounds where benefit to the company would result. It was simplt expressed as a power to acquire shares of a memeber. The claimant objected that the alteration was invalid since it was not for the benefit of the company.”
Anyway it seems a little confusing when it comes to minority expulsion as to the circimstances as to when it is considered “fair”.
Regarding benefiting itself I meant if Dafen Tinplate would have taken its business to Llenelly Steele Co (instead of outside/other business) would’nt that have increased business and therefore profits for the company as a whole and hence increased shareholder’s value. And this begs the question should have the alteration specifically mentioned this point (that Dafen’s conduct as a shareholder is taking business to competitors for example instead of its own group) would the alteration been valid then?
Anyway I just wanted to thank you for your reply.