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Performance management sample questions Sept/December 2021. ACCA past exams

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Performance management sample questions Sept/December 2021. ACCA past exams

  • This topic has 3 replies, 2 voices, and was last updated 10 months ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • March 21, 2022 at 12:16 pm #651587
    iyamu
    Member
    • Topics: 275
    • Replies: 167
    • ☆☆☆

    Sir this is from exams questions Scenario 1

    I do not understand from (a) how they arrived at the total required 6,930, 6,750 & 1,875

    Total contribution for each fulfilled customer order for each products 6,700, 4,300 & 5,600

    Each had 80, 40 & 60.

    The ranking figure of 1400 for Spikes , 1650 for Trail and 2,150 for Road .

    Pls how do they arrived at this figures ? Thanks in advance sir

    March 21, 2022 at 4:50 pm #651598
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51538
    • ☆☆☆☆☆

    We know what the demand for each of the products is (2,300 + 200; 1,400 + 200; and 1,650 + 200).
    We also know how many metres of material are needed for each product (1.5m, 0.6m; and 1.2m).

    Therefore to fulfil maximum demand, the total material needed is (2,500 x 1.5) + (1,600 x 0.6) + (1,850 x 1.2) = 6,930 metres.

    It is the same logic for labour and machine time.

    As far as the ranking is concerned, it is just as I explain in my free lectures on key factor analysis (bearing in mind that they have to supply 200 of each to RunWild otherwise there is a penalty).

    March 23, 2022 at 8:58 pm #651757
    iyamu
    Member
    • Topics: 275
    • Replies: 167
    • ☆☆☆

    Yes thank sir . I got how you calculated the totals but the contribution per pair of shoes for the Fulfil customer order:

    200 Road 80 33.50 6,700
    200 Spikes 40 21·50 4,300
    200 Trail 60 28·00 5,600

    how was the contribution for each product calculated ? sales per each product varies so also the variable costs.

    how was 33.50 for Road calculated

    March 24, 2022 at 6:39 am #651775
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51538
    • ☆☆☆☆☆

    For the Fulfil order, the selling price for Road is 60 – 8 = $52.

    The variable cost is 7.50 + 7 + 4 = $18.50.

    Therefore the contribution is 52 – 18.50 = $33.50.

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