PMJune 2021 ACCA PM exam was - Instant Poll and comments

I also did breakeven revenue, I think it should have been fixed costs/whatever you calculated c/s ratio as

Ahh great! although I thin I got my C/S ratio wrong, because I took my contribution as Gross Profit minus sales, which I am now realizing is probably wrong, hope they dont cut many marks...

Variance is the answer. It’s actually in BPP/Kaplan Revision kit.

sshahin wrote:Which budget dsnt take into consideration uncertainty was a qstn Variance flexible budget simulation rolling budget

I had no idea how to do this! They really didn't give us much info did they? I know the gross profit margin is calculated as (sales - cost of sales)/sales so I just moved the equation around, but I think they only penalise for a wrong number once, not when you include it again in a calculation! So it should be okay

Manakiwala wrote:

pjashu1995 wrote:I got c/s ratio 58% and break even profit 7,200 per week, do you remember your answers?

Sorry i mean break even revenue,,, my bad...do you remember what is the answer i got 7,200 per week

pjashu1995 wrote:

Manakiwala wrote:

pjashu1995 wrote:I got c/s ratio 58% and break even profit 7,200 per week, do you remember your answers?

I think if gross profit margin is 65% then variable cost will be 100-65 that is 35% of sales...that is how i did it

That is also what I did, because if you sub the 35% back into the gross profit margin equation for food you will get the 65% they've calculated in the question so I think that's correct

I did. What is your answer was?

On the second point with the Faros restaurant q (the financial viability), I concluded that it wasn't viable because the restaurant was making a loss rather than a profit. I can't remember how many marks it was worth but I know that my proforma was really basic, I just had total sales with workings for the extra variable costs, the increased fixed costs and then the profit/loss. Would be interested to hear how anyone else approached it :)

marinadal wrote:I did. What is your answer was?

agboolakenny84 wrote:Variance is the answer. It’s actually in BPP/Kaplan Revision kit.

I did. What is your answer was?

pgargaro wrote:On the second point with the Faros restaurant q (the financial viability), I concluded that it wasn’t viable because the restaurant was making a loss rather than a profit. I can’t remember how many marks it was worth but I know that my proforma was really basic, I just had total sales with workings for the extra variable costs, the increased fixed costs and then the profit/loss. Would be interested to hear how anyone else approached it ?

I also suggested not to proceed with it i got profit but it is less than what they would get if they open for 5 days and did you take half capacity or full capacity in question they said after flood restaurant is running on half capacity with only 40 customers or something i took half capacity not sure if im right on it

Yeah I only took 40 too, I missed that at first so had to go back and redo it ???? but I think (my memory is hazy now) I did 40 for the three days it was at 100% capacity and 70% for the other four, and then for calculating how much they spent I just split those numbers in half, so for the full occupancy days i did (20*however much set menu food cost) + (20*however much a la carte cost) and the same for the drinks. For variable cost I already had the amount I'd calculated and then just worked out the number of customers a week and x that by $2 for the food and $1 for the drink to get the increase. and the fixed was just adding $600 or whatever the figure was. I have never seen a question like that though so I have no idea if I approached it the right way, I just hope to get some marks for method!

pgargaro wrote:Yeah I only took 40 too, I missed that at first so had to go back and redo it ???? but I think (my memory is hazy now) I did 40 for the three days it was at 100% capacity and 70% for the other four, and then for calculating how much they spent I just split those numbers in half, so for the full occupancy days i did (20*however much set menu food cost) + (20*however much a la carte cost) and the same for the drinks.

I did the same but i think we need to add $2 for existing variable cost..... From your msg i understood that you multipled $2 to existing cost.

No sorry that's not what I meant, what I did was x total customers by 2 and 1 respectively for extra VC and then add that back onto the total amount I'd already calculated previously, so I think we did the same thing

pgargaro wrote:Yeah I only took 40 too, I missed that at first so had to go back and redo it ???? but I think (my memory is hazy now) I did 40 for the three days it was at 100% capacity and 70% for the other four, and then for calculating how much they spent I just split those numbers in half, so for the full occupancy days i did (20*however much set menu food cost) + (20*however much a la carte cost) and the same for the drinks.

Ahh I interpreted it differently, I interpreted that the consultancy firm in fact asked them to their original costs, for which we had calculated in section A, and in doing so, they would have these % as their occupancy, so the only change I made was the number seats for customers reduced to half, and fixed costs increased by the step increase. In this case I got a profit but a little less then the original one, so I said to accept. I ran out of time otherwise ideally I think I should have compared to the part of the restaurant wanting to increase their prices. I thought I did well in this part C question, but now I think otherwise .............

please don't think you've done badly based on what I said! I have never done a question like that before, i have never even seen one in my revision guide or anywhere, so I could have approached it incorrectly (I wasn't sure what to do so I just guessed)

Guys who got the shadow price of material question in section B. I typed “0” as material was not a limiting resource. Is the answer correct?

Machine hours were ro distract attention. Only inspections and smth. else should be taken ito account. I remember the answer was 91 point smth.

JohnAcceek wrote:Machine hours were ro distract attention. Only inspections and smth. else should be taken ito account. I remember the answer was 91 point smth.

I got answer something like 74.6 or something it is in one of the option not sure but i got my calc right

I think i might be wrong....becz i used batch size instead of no of batches to calculate ABC may be you are right, im realising now

Please can you explain how to calculate c/s ration for food and drink when you also have 2 types of menu? What are the basis for us? Menu or type of meal?

This question there were no options

JohnAcceek wrote:Machine hours were ro distract attention. Only inspections and smth. else should be taken ito account. I remember the answer was 91 point smth.

JohnAcceek wrote:Please can you explain how to calculate c/s ration for food and drink when you also have 2 types of menu? What are the basis for us? Menu or type of meal?

I calculated revenue and contribution for both menus with 50% of total capacity, as they mentioned in question that customers are split equally between 2 menus

Yeah I got a weighted Average C/S ratio of 61% aswell for Faros Question C. Then to get breakeven revenue, I then used Fixed Cost divided by C/S Ratio There seemed to be alot of parts which could easily be missed with this question. Eg only 85% occupancy during Friday, Saturday & Sunday. Good Luck All.

pjashu1995 wrote:

JohnAcceek wrote:Please can you explain how to calculate c/s ration for food and drink when you also have 2 types of menu? What are the basis for us? Menu or type of meal?

So you did calculate: (Menu ?1: Contr from food + Contr from drink Menu ?2: Contr from food + Contr from drink) Sum this and divide by sum: (Menu ?1: Revenue from food + Revenue from drink Menu ?2: Revenue from food + Revenue from drink)

JohnAcceek wrote:

pjashu1995 wrote:

JohnAcceek wrote:Please can you explain how to calculate c/s ration for food and drink when you also have 2 types of menu? What are the basis for us? Menu or type of meal?

Yes thats how i did

Hi I have got same questions in section C zland trust and Frasco hotel CVP questions cs ratio was 60.5% and i multiplied with 52 weeks in part a and than part b after flood there was more occupancy.

Thats was same for me option A or d 91.35 or something

I took 80 customers in consultancy part as i was keep reading the scenario which mention rather was no change so I took 80 rather than 40.

any one remember Thru put accounting ratios question in regards to watches ? i think 50k of advertisement cost was not included in the calculation. another MCQ questions in section B was in regards to sales mix contribution there was sales quantity variance my answers was $1500k adv.