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Essem: In Linear Programming Fixed Cost is i Think 640,000 or 64000 Given in The Question. But It Was PER MONTH & We Were Working On For The QUARTER So i MULTIPLIED The Fixed Cost By 3.
i really fluffed linear programming, payoff table, transfer pricing and variances…..so basically 80% of paper.
i still cannot believe how every one seems to have solved linear programming ? can someone be kind enough to say what were the two scarse resources?
1 was direct labour hours , what was the other one ? and how did you all solve linear programming in general.
i still can’t believe i fluffed linear programming which was my fav topic
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Heeyy
For question 1x didnt change much
y reduced
z increased2) y=66000 x=20000??
3) Was a terrible question.
4) for maximin it was between 742000 nd 740000 i think so you go for 742000 which is $35
5) you used the contribution to sales ratio to get the standard contribution per unit for the first two calculation i think. The mix I got an adverse and the quantity I got a fovourable variance.
Anyone got the same?
Linear programming question I didn’t get round numbers for X and y
Not sure where I messed up, although guessing I solved a simultaneous for 2 different constraints
In my Linear Programming Q I got X=0; Y=90000
Max Contribution = 3.6 mil
Less fixed costs for quarter: 450000×3 to get profit.No one for the same linear programming answer as me
One of them was high output and the other really low. Neither were round numbers either
Can anyone remember the constraint for programming?
i Think
24x+10y<1800000
10x+30y<1680000
42x+20y<720000
X<70000
Y<85000
X,Y>0
Contribution=30x+40yThere were 5 constraints 2 of them were for demand. I got y=66000 but dont remember x
I remember the testing, building and contribution equations. Will post after 5
There were 3 scarce resources I guess, max demand for X, max demand and most important of all skilled labour
i completely forgot about the equation for the linear question but did my calculations based on contribution per minute and my answer gave me x – 20000 & Y 66000.
I mixed minimax & maximaxi up and talked about the rule being choose the best outcome and chose £30 then worked out the totals for each and deducted the fixed costs and advertising costs and chose the best out of the 2. hopefully will still get me some marks.
question 3 – i did the transfer pricing same kind of example we have learnt through this lecture.
Gearbox division could save 5% so i calculated 5% of 7550 (i think that’s the amount) and deducted from the sales figure which would give the maximum price they are willing to pay. and then worked out the 40% of the 7550 to give the variable costs and deducted that from the 7550 to give minimum C co would be willing to transfer at.Absorption costing – i added both products total costs together then added the indirect costs – as reading the question it said calculate full production costs and then divided by total number of labour hours which gave me 31.something
question 5 i put
actual units at budgeted contribution
actual units at actual contributionsales
budgeted units
actual units
then mulitplied the answer with the actual sales per unit.ROCE used revenue instead of operating profit but discussed that it was a way for the managers to look at the income based on their investment, how much money they are making to the investment amount.
asset turnover – i used operating profit/ capital employed – as i couldn’t see a total asset figure – discussed that it was a way for management to see how much money the assets were generating.fingers crossed though.
Yo Redz Linear Programming was the best question probably risk and uncertainity and ABC will give some marks too(Even with the silly mistakes) Variances was just a misunderstanding by me and performance measurement was a disaster!!
Full production cost = labour materials and production overheads?
Guessing I missed a figure out 🙁
How did anyone get the transfer price ? I didn’t have a clue as couldn’t see number of units given ? I got the 20,000 and 66.000 on liners did not see it said quarter. The transfer price was my worst part !
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 😛
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.
Ahmed the advertising was not in the transfer question that was in the 30 dollars or 35 dollars question, minimax and the probabilities- if you are answering my question on transfer cost – so you don’t have to worry, it wasn’t included – such a weird question as couldn’t give a unit price for the transfer cost, unless I missed something.
Yeah i was talking about the minimax question 😛 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
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