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@sanjaymehra said:
I marked the option with both northern and southern because we were not given with targeted roi by head office and there was not much difference in both roi. So i marked that both of them should be continued forward.The current ROI was in the question. It was definitely the Northern division.
@anastassiya777 said:
U manage to calculate them or just assumption?!)Well my answer was close to 800 for the life cycle cost and I calculated the target cost of 96 and the estimated cost 106. So I just divided 106/96*10000 = 11042 unit
@rajeshram said:
What’s the answer for the rolling budget sum? Was that 890?I get that as well
Guys there was a question about continuing to make a product that was budgeted to make a loss. Options for valid reasons were:
To gain market market share and another option. The question asked which reasons were valid/acceptable – Was the answer both?
A few more:
Which chair should be they keep on making?
Quoting the transfer price at minimum to gain a new customer implications:
I put it would both reduce the perceived value and it wouldn’t be easy to raise the price later without loosing the customer. something like that.
@heychi said:
Guys there was a question about continuing to make a product that was budgeted to make a loss. Options for valid reasons were:To gain market market share and another option. The question asked which reasons were valid/acceptable – Was the answer both?
Another option was to sell as complementary product ? I selected only 1 i.e only complementary products, hbu?
@odean20 said:
Well my answer was close to 800 for the life cycle cost and I calculated the target cost of 96 and the estimated cost 106. So I just divided 106/96*10000 = 11042 unitI also find taget and estimated costs but tried several times by different ways but didnt had such as ur way to calculate it.
@rajeshram said:
Another option was to sell as complementary product ? I selected only 1 i.e only complementary products, hbu?I also choosed only complimentary as about raise price for not profit making product seems not realistic.who knows)
What was the answer for the quarterly rolling budget question… I choose 880,000 as 3 months in a quarter and increase was 10,000 per month .. I don’t remember it all by I’m not sure I did it right… How foolish of me to loose 2 marks for a just a simple question as that if I’m wrong with 880,000 🙁
How did you calculated 880,000… It was quarterly increasing … How can u say 880,00p
@anastassiya777 said:
I also choosed only complimentary as about raise price for not profit making product seems not realistic.who knows)I think with penetration pricing they can also sell products at a loss to gain market share.
I also found this on google so I put both options are valid:
https://smallbusiness.chron.com/companies-keep-unprofitable-product-line-10280.html
@aglong said:
I’d be interested to know how other people approached the last question – as there was no BS sheet info, couldnt perform ROCE (etc.) calculations… apart from gross and net profit margin %’s, what other calculations did other people use?
ThanksI used C-P/P formula for every other possible calculation .. Because nothing was quiet shown
@heychi said:
I think with penetration pricing they can also sell products at a loss to gain market share.I also found this on google so I put both options are valid:
https://smallbusiness.chron.com/companies-keep-unprofitable-product-line-10280.html
Yes that makes sense , but what I thought was with selling at a loss , the mindset of costumers would be that the product is of inferior quality and hence that might not increase market share ..
The last question about their performance. I used interest cover as well for the the new loan, but there was no interest cover since the made a loss. So mentioned a bit about that. .
@aglong said:
I’d be interested to know how other people approached the last question – as there was no BS sheet info, couldnt perform ROCE (etc.) calculations… apart from gross and net profit margin %’s, what other calculations did other people use?Thanks
@sonia.ataaye said:
I think it was 81%@viscera said:
I used C-P/P formula for every other possible calculation .. Because nothing was quiet shownWhat do you mean by C-P/P? Thanks
@sonia.ataaye said:
I think it was 81%It was – The first 16 units is to the power 1/4 so yeah 81%.
@rajeshram said:
Yes that makes sense , but what I thought was with selling at a loss , the mindset of costumers would be that the product is of inferior quality and hence that might not increase market share ..I get you – they didn’t ask for the effect of it though, just the reason(s) why they would in the first place.
@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.
I got $370 for lifecycle cost
The worse thing that we will not know the right answers for mcqs after so much discussions and opinions of it!:(
@viscera said:
What was the answer for the quarterly rolling budget question… I choose 880,000 as 3 months in a quarter and increase was 10,000 per month .. I don’t remember it all by I’m not sure I did it right… How foolish of me to loose 2 marks for a just a simple question as that if I’m wrong with 880,000 🙁but it was stated that per quarter 10k increase not per month isnt it?!
@odean20 said:
The learning rate is 75% D 38.6875/90^(1/3)This was for the 16th unit so it should have been to the power of 4 (^4) not ^3
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