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Which budget dsnt take into consideration uncertainty was a qstn
Variance flexible budget simulation rolling budgetThen there was variance qstn in which there is no material price variance but the cost of material was 156000 so we had to calculate aq nd den material mix I guess anyone wth this qstn
Cudnt attend sec c qstn compltely wch was to calculate weighted avg cs ratio. I got it smtg 60.9 I guess ?
simran98 wrote:Did you get an ABC question in Section A?
We had to calculate total cost right?<br>How did you do it?<br><br>@agboolakenny84I had this one, I had no idea how to do it since the fixed overheads that apply to the machine hours werent given
agboolakenny84 wrote:It’s Standard contribution. So yes budgeted contribution.
For this one I just followed what they had done for the example they had given
pjashu1995 wrote:I got c/s ratio 58% and break even profit 7,200 per week, do you remember your answers?
I thought mine said to calculate breakeven revenue in $ not profit, but I might be wrong, I did my answer for breakeven revenue
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 budgetI 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
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: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
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
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