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hey guys
can someone tell me how you people tackled the 8 marks variance question
I mean what was the mix ratio for the sales mix variance ?and what was your answer for that?
I struggled with it
The reason for the 90% learning curve not 80% is both option. 1 they take longer to produce the product than expected 2. The need the brick at a different standard size
but they haven’t said anything about the size.. i gave 1 only for that I can remember, as the other option was asking for the customers with specific size of their own preference
@heychi said:
Questions on learning curve:1. 21 minutes for 100th unit
2. Can’t remember the cost I selected. I think i chose $375 but I was running out of time so that was a guess.
3. Reason for the rate at 80% was it? Can’t remember if this was better or worse that expected?? If it was worse I put that the new customers needed the bricks to be cut different from standard and something else.I remember a question bout the Margin of Safety and I put 50%.
also got 21minutes and as i remember 375$.it was question about rate before the question about reasons why.it was like to calculate the actual learning rate.
@jgoodall said:
I got $110,000 for the Relevant Cost Question, as the machine could have been used to produce a separate product making $110,000, therefore being the opportunity cost.Last question i calculated Gross Profit Margin, Net Profit Margin, Interest Cover and talked about the 50% admin expenses, the compensation costs and the foreign currency fall of 25% etc.
Anyone get what the Lifecycle Costing one was? I remember guessing that one.
For the last question I did the same and used the same reasons and answers. I tied in that they could try to find a cheaper way to advertise as the costs rose by 50%. I Didn’t calculate interest cover though.
Altogether I put everything within about 4/5 bullet points plus the calculations. Not sure where the 20 marks will come from as it seems a lot aha.
@odean20 said:
The reason for the 90% learning curve not 80% is both option. 1 they take longer to produce the product than expected 2. The need the brick at a different standard sizeYes! This is what I got too.
@odean20 said:
The margin of safety is 55% you should include the 10% sales commissionI got 44% isn’t sales commission 5% or something ?
@odean20 said:
The margin of safety is 55% you should include the 10% sales commissionI included this and still got 50%.
@heychi said:
I included this and still got 50%.I also included the comission in calculation as it still sales.
Ahhh I remember one to do with Target costing..
What they could do to close the gap?
I selected option 3 only which I think was to negotiate a bulk discount. Increasing the selling price isn’t to do with closing the cost gap right? I can’t remember the other two options but didn’t think they were right for some reason…
Anyone remember throughput questions?
@anastassiya777 said:
I also included the comission in calculation as it still sales.Yes, it was already included for us in the question from what I remember. What % did you get?
@heychi said:
Yes, it was already included for us in the question from what I remember. What % did you get?im not sure about exact %.i believe something with 50%.
@heychi said:
I included this and still got 50%.That’s not possible because the contribution would increase by 3 to 33 p.u b/even point = 150000/33 = 4545 put
Margin of safety 10000-4545/10000*100 is 55%
F/C 15*1000 = 150000
@proticz said:
hey guys
can someone tell me how you people tackled the 8 marks variance question
I mean what was the mix ratio for the sales mix variance ?and what was your answer for that?
I struggled with it
Hey,
You needed the OAR to be calculated so you could find out the standard profit for each Vacuum cleaner.
Then you needed to write down actual mix amounts, total them up and then compare each amount to what the standard proportion would have been under the actual mix ratio.
It’s really complicated to explain online but it was a lot to do for just 8 marks in my opinion.
Anyone the variances from the 20 marks question? sales mix and quantity variances?
@odean20 said:
That’s not possible because the contribution would increase by 3 to 33 p.u b/even point = 150000/33 = 4545 putMargin of safety 10000-4545/10000*100 is 55%
F/C 15*1000 = 150000
Hmm OK
@odean20 said:
It can also be wrong who knows.All the best still
Not sure if I am right , but commission is an expense right ? Shouldn’t it be subtracted , so ideally the contribution would be 27 instead of 33?
@rajeshram said:
Not sure if I am right , but commission is an expense right ? Shouldn’t it be subtracted , so ideally the contribution would be 27 instead of 33?That’s the point it should less. So I guess I’m wrong
@heychi said:
Ahhh I remember one to do with Target costing..What they could do to close the gap?
I selected option 3 only which I think was to negotiate a bulk discount. Increasing the selling price isn’t to do with closing the cost gap right? I can’t remember the other two options but didn’t think they were right for some reason…
Anyone remember throughput questions?
throuput was a theory question right?
@anastassiya777 said:
throuput was a theory question right?And accepting a lower profit margin
@anastassiya777 said:
throuput was a theory question right?I don’t remember any through put question know of make or buy decision
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