PM*** F5 June 2014 Exam was.. Instant Poll and comments ***

For the profit outcomes i just calculated sales and deducted Variable Costs. I guess i missed a point in the question because ppl are talking about some advertising cost :P

Hope my input helps someone. Q1) abc first unit increased in price slightly causing demand to fall because of price elasticity. Second unit decreased in price causing demand to increase. Third unit increased in price but since it was inelastic the demand would increase. Q2) x= 20,000 y=66,000 the main constrain was the first equation as that was making the fewest tablets. The slack was simply the other two equations left over minutes. Q3) part a was fairly straight forward. The transfer price was the minimum the division would accept so the variable cost with the opportunity cost lost selling to external customers vs the market price. (think I messed up TP) Q4) was straight forward with a pay off table both my answers suggested $35 was the best price to charge (including minimax) that was simply to decide which price generated the most profit at minimum level of sales. Q5) straight forward variances. Can't remember my exact answer but I think part one was adverse and one favourable because of more sales.

Yeah i was talking about the minimax question :P i missed the advertising point somehow maybe due to less time and i dont remember what i did in transfer pricing i was completely blank

Supposing you calculated the optimum production plan in the linear equation question incorrectly, would you be awarded marks for calculating slack correctly in the next part but with your original wrong answers or score nothing?

Marks do carry forward

It was fairly straight forward. The y tablet used the least time in each three constraint, and it's contribution was higher than X. So the Idea was to make y to the highest demand. My graph indicated this with the contribution lines. I may be wrong.

Hi guys, just a question please and i would appreciate if someone could answer tome!!!! :D in question 2, i think instead taking the minutes... for instance 24x+30y=1,800,000 minutes...i touk the hours like i think it was 1,800 so my figures were much less than yours..you think i could loose all marks??? and slack actually based on that was for the second equation 12,000 exactly which was agreeing with the hours. I would appreciate if someone could tell me or help me on that! Thanks in advance!!!

Hi everyone . Guess the was better than the previous. The tips were precise. I really got stuck with ordering cost in abc don't know why was I so confused. I was really pressured time wise.

Sokratis, as long as u changed the minutes into hours for the constraints you should be fine e.g 6 minutes = 0.1 hours. You answer should have been what most people got X = 20,000 y= 66,000 the number of tablets produced would not change.

This is what I thought: 1) It didn't give number of batches it gave number of units in each batch - so had to work out how many batches using that info. 2) I got x as very large, y as very small. Constraints were: the first and third labour things (build and test I think). 3) Transfer price - they told you how much C Co were selling externally and how many sales they were missing out on - I think you had to fully sell to external customers first and sell the remainder to Gears for marginal price. 4) Didn't really know what to put for budget uncertainties 5) Got in a bit of a muddle as I only saw right at the end that it was sales mix "contribution" rather than sales mix.

Hi all, just a question please...someone seems that deleted the topic that was opened i don't know why... In question 2 instead of taking minutes for my calculation i took the hours.. In addition i found much more less values than you guys but you think i was wrong completely? for example if i remember well i took for the labor 30X+40Y=1,800hours and not the minutes that was given in the brackets. However when i tried to calculate the slack my figures were matching exactly with the hours, i think one it was 12,000 if i am not mistaken... please help, thanks in Advance :)

Sokratis, I answered your question before the thread was closed. Your answer would be relevant as long as u converted minutes into hours. E.g 6 minutes = 0.1 hours and worked it out like that. Regardless if you used hours or minutes your answer should of been 20,000 units of X and 66,000 units of Y. This is what most people are getting for the optimum contribution. Hope that helps

what is the standard contribution in variance question ??

I used hours too and the opitmum mix and contribution are exactly in line with the ones who took minutes!! :D

How was f5 guys

In variance question i calculated the standard contribution through C/S Ratio Formula but dont know if it is the right way

what is the standard contribution in variance question??

i multiplied the contribution with the c/s ratio given,as i remember contribution was 113280 and the c/s ratio was 44.6% for full clean so 113280x44.6%=50522.88 and then divided by the number of units of full which were 3600,so i got 14 as contribution of full...is this right or wrong??

yes my answer was X 20000 and y 66000 optimal point where demand line of y cross the line of build

I just multiplied the sales prices given for each service by the c/s ratio as it said sales prices remained constant.

I used the C/S ratio to calculate the budgeted mix in variance LOL What a blunder! Time pressure killed my paper. In ABC also i did a silly mistake but i hope i get method marks atleast

Which two constraints did everyone get for the linear programming?

please let me know im very nervous right now

Q1 was fine I think! Q2 messed up - mind went totally blank, couldn't even work out the 2 formulas :( Q3 calculations and explanation not to bad but had no idea how to calculate the transfer price-pretty just explained marginal and absorption cost and the problems. Q4-thought was ok but included advertising costs in all profits? Also Can anybody remember what the budget uncertainty question was? Was it what are the uncertainties or how to deal with them? Q5 probably the easiest but managed to calculate sales quantity variance wrong! Doh Here's hoping I get over 50% despite pretty much skipping linear programming. Thanks!

I think you might be wrong as c/s ratio gives contribution as a % of sales. Sales prices were given and constant so multiplying them by the ratio would give you standard contribution. Might be wrong though!!

demand line of Y and Build line

Just couldn't manage my time well and that would cost me. Just prepping myself for dec 14. Don't think I did well enough for 50%

Ah so were there two slack amounts?

Did we have to calculate Slack for Demand as well?

Guys how was q3 contribution calclated.....and how was fc absorbed ...