[Lily]

Finally! Passed with 57%

[Lily]

@azaramirov said:
Can anyone explain the first MSQ? The etails were like : Sales price $25 , Contribution $15 , Fixed $4 . Units 30000….

Yes! That was the most difficult question! I spent to it almost 10 minutes and back twice till I understood that I’ve done silly mistake. It was the first question and I didn’t want to be wrong on this easy item.

So, the answer is D: profit increases by 100 000$.
First time after calculations I couldn’t get no one answers from a) b) c) d) Stupid! Just D! At the end of time I’ve just started to play with numbers (how I can*-))
Version 1 (30 000 units):
Revenue: 30 000*25 = 750 000$
Cost of sales: 30 000*15 = 450 000$
Contribution: 300 000$
FC = 30 000*4 = 120 000$
Profit: 180 000

Version 2(Units 40 000):
Revenue: 40 000*25 = 1 000 000$
Cost of sales: 40 0000*15 = 600 000$
Contribution: 400 000$
FC: 120 000$ (remain the same! That’s the case!)
Profit: 280 000$

Yahoo!

[Lily]

@parthu113 said:
ROI:

since both the adjustments(purchase and sale of asset) are on cash basis.
we are selling one asset for 40K and getting cash of 50K so the net change in the asset is 10K.
if we purchase asset for cash then net change in asset is nill.

so the total value of the asset is 1010000.

Yes! You convinced me. Indeed – only net increase should be take into account. That means that my first answer was correct.

[Lily]

@sarahb1985 said:
Damn question 31 I didnt base it on the contribution per unit of beta.. I just based it on contribution per unit. Shakes first (because of agreement), cakes second, cookies third.. Anyone else do similar?!

My fourth attempt at this paper and did not think the main two questions were that bad at all. MCQs were tough. Always a few I leave until the end but run out of time to calculate so end up guessing randomly! Fingers cross fourth time lucky!

I wish!

[Lily]

ROI:
Profit = 190 000 + 10 000 (net profit from selling asset)
Net assets have been increased to 1 260 000$: 1mln + 250 000 + 10 000 (as increase in net asset from disposal old machine)
ROI = 15.87%

But now I can see that I wrong – It was necessary to deduct 40 000….I forgot((((( I believe that the answer would be ROI = 200/1220 = 16.39%
There was this answer?

[Author]

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