FINAL F2002 SOLUTION

FINAL F2002 SOLUTION - Concordia University John Molson School of Business Comm 305/2 Fall 2002 Solution to Final Exam QUESTION 1 MULTIPLE CHOICE

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Concordia University Comm 305/2 Fall 2002 John Molson School of Business Solution to Final Exam 1 QUESTION 1 MULTIPLE CHOICE MARKING KEY No. on Test Correct Answer Marks 1 C 2 2 B 1 3 B 2 4 1 5 B 2 6 B 2 7 D 1 8 2 9 1 10 A 1 11 D 1 12 D 1 13 B 1 14 1 Total 19 marks
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Concordia University Comm 305/2 Fall 2002 John Molson School of Business Solution to Final Exam 2 QUESTION 2 SOLUTION Professor judgment advised : partial marks for equations, method , approach can be given even if the calculation figures are incorrect, these can be 50 or 75% of the mark. Student assumptions can be considered. Rounded off figures should be accepted as solutions. 1. Pool Bimbo Barbie Fun Total P $88 P $120 P $90 $88 + 2($120) + 5($90) = $778 VC $56 VC $76 VC $50 CM $ $32 CM $ $44 CM $ $40 $32 + 2($44) + 5($40) = $320 CM % = .4113 FC $ 500,000 Sales ratio 1 Sales 2 Sales 5 FC/ CM % = $500,000 /.4113 = $1,215,625 (rounded) 2. Goal Mrs Kay scenario Breakeven prior to advertising costs P VC $18+$20+$12= $50 CM $ % 40/90 .44444 ratio FC $300,000 Tax rate N/A 0 = $90x - $50x - $300,000 0 $40x - $300,000 $300, 000 $40x $300,000/$40 = 7,500 units breakeven prior to advertising OR FC / CM in $ = $300,000/ $40 = 7,500 units in sales 7,500 X $90 = $ 675,000 OR FC/ .44444 $675,000 (rounded) Partial marks if right method is used, or equation provided.
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Concordia University Comm 305/2 Fall 2002 John Molson School of Business Solution to Final Exam 3 QUESTION 2 SOLUTION (continued) Goal Mrs Kay scenario Breakeven after to advertising costs P $90 VC $18+$20+$12= $50 CM $ % 40$ 40/90= .44444 ratio FC $300,000 + $100,000 Tax rate N/A 0 = $90x-$50x - $400,000 0 = $40x - $400,000 $400, 000 = $40x $400,000/$40 = 10,000 units breakeven including advertising costs OR FC / CM in $= $400,000/$40= 10,000 units In sales FC/CM% = $400,000/.44444 = $900,000 (rounded) OR 10,000 X $90 $ 900,000 Partial marks if right method is used, or equation provided. 3. Goal Vice president operations scenario breakeven P VC decreased $20 + $15 + $12 = $ 47 CM $ % $43 43/90 .477777 FC additional equipment $300,000 + $40,000 Tax rate N/A 0 = $90x - $47x - $340,000 0 $43x - $340,000 $340,000 = $43x $340,000/$43 7906.97 (rounded to 7907) units breakeven prior to advertising costs in sales FC / CM % $340,000/ .477777 = $ 711,630 (rounded) OR 7907 X $90 $ 711,630 Partial marks if right method is used, or equation provided.
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Concordia University Comm 305/2 Fall 2002 John Molson School of Business Solution to Final Exam 4 QUESTION 2 SOLUTION (continued ) 4. Goal Comtroller scenario $50,000 pre tax profit for the pool fun P $90 VC $20 + $15 + $12 = $47 CM $ % $43 $43/$90= .477777 FC $300,000 + $100,000 + $40,000 Tax rate .40 Before tax profit $50,000/(1 - .40) = $83,333 $83,333 = $90x - $47x - $440,000 $43x = $533,333 x 12,403 units (rounded) in sales 12,403 X $90 = $1,116,280 (rounded) OR FC/ CM% = 440,000/ .47777 = $ 1,116,280 (rounded)
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This note was uploaded on 04/01/2010 for the course JMSB comm 305 taught by Professor Marivot during the Winter '10 term at Concordia Canada.

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FINAL F2002 SOLUTION - Concordia University John Molson School of Business Comm 305/2 Fall 2002 Solution to Final Exam QUESTION 1 MULTIPLE CHOICE

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