EXAMINATION
SEMESTER II ACADEMIC SESSION 2012-2013
MASTER IN BUSINESS ADMINISTRATION EXECUTIVE
APRIL 2013
DURATION: 3 HOUR
COURSE CODE
:
ZCZA 6213
COURSE TITLE
:
ACCOUNTING FOR DECISION MAKING
INSTRUCTIONS
:
1.
There are FOUR (4) questions.
2.
Answer ALL questions in the provided answer booklet.
3.
Total marks are 100.
This paper consists of 6 printed pages excluding this cover page
0
QUESTION 1 (25 MARKS)
La Diva Dress Shop produces custom designed dresses for retail sales on the premises. Costs incurred during last month include the following:
Costs of fabric used in dress
Wages of dressmakers
Wages of dress designers
Wages of sales personnel
Wages of designers who
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(7 marks)
b) Suppose sales revenue are RM200,000 greater than expected. What would the total profits be? (3 marks)
c) Calculate the margin of safety in sales revenue.
(3 marks)
d) How many units must be sold to earn an after tax profit of RM180,000. Assume the income tax rates is 40 per cent.
(5 marks)
e) Suppose the company’s income tax rises to 45 per cent. What will happen to the breakeven level of Katayama Company?
(2 marks)
f) If Katayama’s variable manufacturing costs increase by 10 per cent, calculate the selling price that would yield the same contribution margin ratio as expected.
(5 marks)
3
QUESTION 4 (25 MARKS)
PART A (18 MARKS)
Fun Sporty Company manufactures toys and sporting equipment, including golf kits for preschoolers. A national sporting goods chain recently submitted a special order for 7,600 golf kits. Fun Sporty was not operating at capacity and could use the extra business. Unfortunately, the order’s offering price of RM16.50 per golf kit was below the cost to produce the sets. The controller was opposed to taking a loss on the deal. However the personnel manager argued in favour of accepting the order even though a loss would be
Assume that next year management wants the company to earn a minimum profit of $162,000. How many units be sold to meet this target profit figure? [3 points]
3) Assuming a 15% operating income return target on the beginning investment, what sales level is needed to hit this target?
In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.
The Second Bank of the United States was the countries national bank founded in 1816; this being just five short years after the first national bank expired (1833 Andrew Jackson Shuts Down Second Bank Of The U.S., n.d.). The first national bank was created by Washington and Hamilton in 1791 to house all federal funds. Jackson took office in 1829 and launched an investigation into the policies of this bank and the funding. Jackson, fought for the common man, not just the rich. He did not like his findings due to this and ordered banks closure in 1833; this is what is referred to as the Bank War. He also went as far as to veto an attempt by Congress to make a new branch of the bank, this and other reasons he had a spilt cabinet. Once closed he
(b) How many units will Yabba have to sell next year in order for it to achieve the same profit that it did this year?
The revenue is $600,600*1.2= $720,720. The variable cost changes as sales increases and fixed cost stays the same, the gross profit is $175,500. After tax, the net income is $100,557.
New golfers increased from 1.5 million to 3 million between 1988 and 1998, but most of them quit due to increased cost of playing which went up by nearly 50%, unavailability of courses and time involved in playing. The global premium equipment market declined post 1998 due to various reasons like decreased demand, Asian economic turmoil and saturation of product in the market place. To CGC’s benefit the competition on golf equipment
The founder, Ely Callaway’s vision is: “If we make a truly more satisfying product for the average golfer, not the professionals, and make it pleasingly different form the competition, the company would be successful.” However, this vision is change from other company’s visions; the difference being that the price is not mention.
A Spanish conquistador who invaded Aztecs and took the land for Spain. Orders were made for and expedition but however were cancelled. He “ ignored the order and set sail for Mexico with more than 500 men and 11 ships that fall” (http://www.biography.com/people/hern%C3%A1n-cort%C3%A9s-9258320#early-life) During his invasion, he took King of the Aztecs, King Montezuma and hostage so his men could raid the city. Soon he was overrun by the aztecs and left, but came back to take the city again and Prince Charles appointed his as governor for new spain but his position was taken way and died wanting recognition.
Looking at the market we can see that Golf Companies have suffered after the 2008 recession. However, in 2012 golf ball market was $483 million in retail sales from 17.6 million units which was 4.1% growth from 2011, showing that there has been improvement in the market performance from companies that had lower prices for golf equipment as people were willing to spend on their product. However Altius could not regain
3- As we can see the company would loss 0.52 cent per 1 kg if it decides to sell at 6.85 price and allocates the fixed expenses at 1.20 per 1 kg.
It is unknown when the game of golf originated, but it is believed that people began playing in Europe during the middle ages. In the United States, golf was a sport primarily played by the wealthy individuals until tournaments began being televised. Since then, golf has grown to be a very lucrative industry with over 27 million golfers nationwide by the end of the 1990’s. “Competition in the Golf Equipment Industry,” a case study written by John E. Gamble of the University of South Alabama, is an overview of the problems currently facing major companies in the golf equipment industry: technological limitations (due to golf’s governing organizations), a decline in the number of golfers,
Over the development of the United States, one controversial issue disassociated the nation. Regions of the country formulated into two groups, in support of either the South or North. Prior to 1861, ethical issues regarding slavery transpired nation wide. The United States imported slaves from the Triangle trade. Over time, the common practice of slavery increased the economy 's wealth and employed opportunities to expand to the Pacific Ocean. Slavery affected people to support two sides, either to be in support of slavery or want to abolish it. Strong opinions amassed, outrage and emphasis for the morality of slavery caused outbreaks of rebellions and violence. Tolerance for slavery was not the only singular cause of the Civil War. Profusions of both short and long term causes contributed to the outbreak of the Civil War. The introduction of slavery had an ingrained impact, as the Mexican-American War significantly lead to tension, and Lincoln’s election sparked disunion between the nation.
The partners must do additional analysis prior to determining if they should invest in a new miniature golf venture in Golden City. Before establishing marketing objectives, advertising and promotional programs, plans for addressing demand fluctuations and considering alternate locations, they must determine if they can generate sufficient sales to fund operations. They have done market research which provides a good baseline for establishing the demand, course capacity and anticipated costs. Once they have analysed this data and established that the business is financially viable, they can address advertising, demand and location questions by developing a marketing strategy.
The Starry Night is a piece of artwork created by Vincent van Gogh.It was Painted in June 1889.