*** F5 June 2013 Exam was… Post your comments ***

Questions were ok, but I messed up on decision tree, I did say they should opt for option 2. I did ok on part c. Variance analysis I messed up too, I forgot how to do the sales mix. Hoping I’ve gained marks on the theory side. Just got to wait and see now, hopefully i’ve done ok, strongest points were balance scorecard, budgeting (theory side).

Nataly you are right regarding Q1 The company will make more profit by not expanding . Have you spot the the project was for 3 years. But it doesn’t matter ( I think!)

in Q1 on decision trees i did all the EV calculations but forgot at the end to write which decision should be taken out of the 2 options!! how many marks am i likely to lose for missing that main bit out lol feel so silly

<cite> @unknown44 said:</cite>
in Q1 on decision trees i did all the EV calculations but forgot at the end to write which decision should be taken out of the 2 options!! how many marks am i likely to lose for missing that main bit out lol feel so silly

14marks

what did people write for the balanced scorecard question?

<cite> @milsaic said:</cite>
I nessed up the variance question , multiplied by the standard selling price instead . I missed the decision tree, I had the tree right but was confused by the wording, did it say without expansion there is a decrease of 5250 . If I pass then I know God saved me

Yeh, without expansion the number of members would go down to 5,250 and op. costs per member would remain the same at £80 per member. Therefore, if we did “nothing” the total profit = 3 x 5,250 x (720-80) = $10,080,000.

Hi can anyone describe how does the tree look like?
I am still very confused right now =(((

<cite>@nobleseven said:</cite>
Yeh, without expansion the number of members would go down to 5,250 and op. costs per member would remain the same at £80 per member. Therefore, if we did “nothing” the total profit = 3 x 5,250 x (720-80) = $10,080,000.

$10,080,000 minus capital costs 360,000?

Is that I read the question differently from everybody,cos I thought it decreased every year by 5250 which is 6000-5250

I think the decrease was only in year one….I hope am right cos thats what I did.

guys i am worried on the variance question did we have to multiply by standard profit or standard contribution

It was decrease to 5,250. Think about it, if it reduced “by” 5,250. You would have 750 members left. Your profit would be 3 x 750 x (720-80) = 1,462,500. It would be silly to even consider “non expansion”

Nataly1986, I didn’t take away the 360,000 for “non expansion” because the 360,000 capital cost was only if they went ahead and expanded. So when working it out for the “expansion” then you take away 360,000.