- This topic has 344 replies, 121 voices, and was last updated 9 years ago by
.
- Posts
@nikaacca said:
zahid do you remember what you mark in questions
I need to know , about shadow price, enviromental questions , also current/quick ratio question , question one , minimax regret 350?Environment- related cost should go to the joint cost center and environment driven to general overhead
@nikaacca said:
Kainosvik, yes I wrote it, and mentioned that it would be good , but what about elastic?
when we calculate price -310 zero demand?
every 2$ they loss 2000 demandRemember that with market skimming,you can always reduce the price. So I don’t think that the elastic price is a problem,at least at the initial launch.
You know you also use market skimming when you are not even sure of how the market would react. Therefore,if you find out after the launch that demand is elastic,you can reduce the price but if demand is inelastic,you can leave the price at the high initial price@nikaacca said:
Kainosvik , It was A?Yes, A
@vaniaezra said:
For the learning effect. To calculate the revised hour, which should we used, 460th or 1000th unit? So confused with this number 3 questiomI used neither 460th nor 1,00th. Instead,I used the average hour for the first 1,000 units.
@nikaacca said:
I think part A (test section) was diffcult, do you remember questions?Do you remember the question on return per factory hour? Did you convert the 6 minutes to hour? That is, 0.1hour
Nika, I believe the price elasticity research was done on a SIMILAR product, not the same one.
Since the product itself is innovative then there’s a chance that the price is not elastic, therefore, market skimming can be used during the early stages of the product life cycle.
That is what I said anyway, and of course the more obvious things like covering the heavy advertising expenses that go with market skimming, the research & development costs and trying to break-even as quickly as possible.
Don’t you work out the TP per min then times it by 60? Why 10? 60 mins = 1 hour right?
Andrea, but if it’s another product (the same) elasticity why we use it for max contribution for part b 🙁
Bryan
if sale price 80 material 20
80-20=60
60 per 6 minit = 60/6 *60 600
60 per 0.1 hour 60/0.1 -600@peanuts said:
I believe minimum transfer price is the higher of suppling division’s lost contribution (850-770=80) or marginal costs (740), therefore I got it as 740.hey Sarah thanks, I think it’s the two of them added together! Which is why I was confused in the exam 820>800.i just wrote there is no transfer price. One thing is for sure my answer is not right.
Well again, our product is new to the market. The other product which was researched was not, so perhaps it may have been a better indicator of the future elasticity.
Nika, don’t worry too much about it, in such answers you are marked for relevant points. If you gave your reasons a good argument, then you should still get marks. The way I interpreted the question is this: show the examiner that you know what market skimming is and then give your reasons why you think it would be bad or good for this situation
Hi, little bit confused with your calculation but my method will be as followed
If TP = 60 then divided that by 6 gives TP/min, ie $10 per min then times it by 60 should give you the required TP/hour and the ans is 600?
Please check me if my logic is wrong.
phh yay fixed overheads was 8,00,000 and variable overheads 3… but total variable over head per unit was $21 i belive..
the question said for every $2 increase in price demand fell by 2000 units ..
and situation was. whats should be the price at 2,50,000 units..
so ..
a = 250000/2000*2 = 250
MR = a-2bq
21 = 250 – 2(.001) q
21 = 250 – .002q
229 = .002 q
q = 114500P = a-bq
= 250 – .001* 114500
= 250 – 114.5
= 135.5now that i think of the question, demand was already given as 250000 units..
so y did i calculate the Q ? :S :S :SI have messed it up havnt I ?? Can anyone please tell me the right wayy
well, I am afraid that you made mistake in calculating a.
the price corresponding to demand of 250,000 is 60 so you should have add 60 to 250 then come up to 310
I think the correct a is 310however, I believe you will get mark for your logic remaining calculation
Average pepar no so easy and no so difficult
i attempt approximately 87% and i need only 50% inshaALLAH …
- The topic ‘*** F5 June 2015 Exam was.. Instant Poll and comments ***’ is closed to new replies.