[bintetauqeer]

Thank You tax tutor I sure am going through all the OT lectures and notes. I have another question that is that i can not find Chapter 12 to 15,19,20,21 in lectures available

[bintetauqeer]

hello joselle first of all congratulations. I will be attempting f6 in june and i am quite scared as it is my first attempt. Can you give few tips and tricks about how you prepared for it what different you did this time as u said it is your 4th attempt.
Thanks, Your help will be appreciated

[bintetauqeer]

Thank you Jetavi…you have been very kind and helpful. Stay Blessed

[bintetauqeer]

thank you so much…well i decided to attempt it in june…but i cannot find material for f6 june 2019

[bintetauqeer]

Right sir
Also sir i have to ask you that while i was calculating shadow price of an equation, two different shadow prices were calculated from the same equation if add 1 extra unit to either one of the equation why is that so?
like if the equation at optimal point is 0.16x + 0.5y=5000 and x=1200, if i add extra unit to first equation shadow price is different and if i add extra unit to second equation shadow price differs.
will it not lead to false answer in the exam? as both answers differs

[bintetauqeer]

Willow CO
Two of the divisional managers in WILLOW CO disagree on the performance measures which should be used to determine their bonus for the year. Manager 1 is the manager of a large division, while manager 2 is manager of a small division . Manager 1 prefers to use residual income and has given the following examples of limitations of ROI to support this decision.
Which of the following is a valid reason for Willow Co choosing to use RI and not ROI?
1) if assets are valued at NBV, ROI figures generally improve as assets get older. This can encourage managers to retain outdated plant and machinery.

2) ROI is a relative measure, therefore small investments with a high rate of return may appear preferable to larger investment with lower ROI. However the larger investment may be worth more in absolute terms

(Sir in this question i think 1 is more relevant to the requirement but in exam kit 2 is the correct answer. Can you please explain why?)
Thanks,

[bintetauqeer]

Residual income is more flexible, since a different cost of capital can be applied to investments with different risk characteristics.
(isnt this statement wrong?)if no why

[bintetauqeer]

yes sir I have watched your lecture and it was very well delivered. Thank you for your efforts to help us

[bintetauqeer]

3 P Co makes two products, P1 and P2. The budgeted details for each product are as follows:
P1 P2
$ $
Selling price 10·00 8·00
Cost per unit:

Direct materials 3·50 4·00
Direct labour 1·50 1·00
Variable overhead 0·60 0·40
Fixed overhead 1·20 1·00 ––––– –––––
Profit per unit 3·20 1·60 ––––– –––––
Budgeted production and sales for the year ended 30 November 20X5 are:
Product P1 10,000 units
Product P2 12,500 units
The fixed overhead costs included in P1 relate to apportionment of general overhead costs only. However, P2 also
included specific fixed overheads totalling $2,500.
If only product P1 were to be made, how many units (to the nearest whole unit) would need to be sold in order
to achieve a profit of $60,000 each year?
A 25,625 units
B 19,205 units
C 18,636 units
D 26,406 units

I calculated the fixed costs of P1 only and also the contribution of P1 only. Answer is wrong but i dont understand why because i find it strange that you take the fixed costs of both products but the contribution of only 1 of them.

[bintetauqeer]

Sir can u explain this with your method in lectures as bpp has used a different one and i cannot understand the solution.

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