*** F5 June 2016 Exam was.. Instant Poll and comments ***

Thanks so much for the review.
Could anyone help me with the Revised Mark Up?
In short : Cost + Mark Up (50% Cost )=Price.
But as market conditions change company increases Price by 10% and lowers Cost by 2%. What’s the new Mark Up?
I would really appreaciate feed back on this because I’m lost, got no solution even close to the MCQ variants. For the other MCQs I found solutions similar to what you guys described here.

Can anyone pls tell his / her views on Q1 part B market share and mkt size pls pls pls

Was question 5 of section B relevant costing or a decision tree?

thanks

For the Q1 part B market share and mkt size my approach was as follows;

Market Share (Planning)

(Original Sales Volume – Revised Sales Volume) x Std Contribution
Std Contribution – (Budgeted Sales – Budgeted Variable Cost )
Revised Sales Volume – ( the budgeted Units x 1.2 for the SSD) & ( the budgeted Units x 0.95 for the HDD)

Market Size (Operational)

(Actual Sales Volume – Revised Sales Volume) x Std Contribution

Anyone else use this approach

Overall I dint find the Section B to be that bad, but section A , those MCQ were difficult

I got 75$% buh I did a quick test of d percentages in d qtn instead of using any formula… It seemed faster for me

@karanpreetrobin said:
Absolutely bang on!!!
But one slightly bit problem.
Yours heading are other way around though.
It was size planning & share operational.

LOL,yes you are right,had them right in the exam though,, how did u find the exam?

It was a tough exam as usual. I managed to attempt all questions. I misread question 1. In my opinion question 4 was a bit tricky.

June 2016 session was my second attempt to pass F5. First time I was in progress with my studies and failed to finish on time.
MSQs were challenging because of theoretical questions. The LR was 75%. Target mark-up I suppose was about 35% (if x – cost, than price =1.5*x; after changes 0.9*0.98*1.5*x = 1.323x so attainable mark-up is about 35%)
ROI = gross profit/(non current assets -depreciation+inventory) I suppose
Q1 I calculated total sales volume variance (Adverse) than Sales planning variance HDD Adv, SSD Favourable, as a whole adv, Market share variance adv (used standard contribution)
Q2 Breakeven 300 athlets 90000$ revenue, profit for 500 is approximately 24000 as I remember, described the change in fixed cost, variable cost is constant up to 400 athlets, than decline from 200 to 100$ per athlet
Q3 I calculated ABC full cost as I remember 70+smth and 80+smth and suggested that using ABS is time consuming and expensive and current price 110$ is in compliance with competitive market (lower than rivals’)
Q4 I was short of time and calculated current profit of each division and organisation as a whole and profit after accepting the offer. I defined that the offer shoul be rejected because of loss for the whole organisation and Division L’s capacity shoul be utilised to produce and transfer the same volume as it is, but transfer price can be negotiated to minimum external market price (37)
Q5 was a fail but I wrote that school 2 should be chosed (minimum loss of fee income, minimum incremental cost of decision, minimum profit foregone)

@burhansalah said:
It was a tough exam as usual. I managed to attempt all questions. I misread question 1. In my opinion question 4 was a bit tricky.

what did u think about Q1?

F5 was a nightmare really to me it was a disaster, i never so this kind of CVP question before also question 5 was tough. MCQ a mess.

@saajan said:
Yes i also included the cost without overheads bcoz we were asked to calculate full cost per unit. but the ans u r saying is differnt from mine.?

Ohh what were they to nearly ?

And sorry but last question what was your school choice clousier
I did the School 1 to be closed.
And also suggested 24 to 37 transfer pricing in question 4.

We take profit before interest and tax, I suppose gross profit is closer to this definition, but may be this is not appropriate for the question…For waste processing company I am not sure on details of task now, I don’t remember exactly, but it seems to me that the price negotiated was for the first item which was cheaper under ABC.For mark up if original cost is defined as x and than original price is 1.5 * x so reduction of market price is 0.9, reduction of cost is 0.98 so 0.9*1.5*x*0.98=1.323x and current mark up is 32.3 so I chose 35% (the nearest above this figure)
That’s my point of view, but I doubt that I won’t fail the exam