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Hi Ruchi,It's great to have your help last time. Could you please provide answer to the attached exam ?Thanks.

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BMAC5203/HUTECH/JULY/F-KK 1 PART A INSTRUCTIONS Part A contains TWO questions. Answer BOTH questions. QUESTION 1 Marks Setia Selalu Company reports the following results for the month of November: Sales (10,000 units) $600,000 Variable costs 420,000 Contribution margin 180,000 Fixed costs 110,000 Net income $ 70,000 The management of Setia Selalu Company is considering the following independent courses of action to increase its net income. 1. Increase selling price by 6% with no change in total variable costs. 2. Reduce variable costs to 65% of sales. 3. Reduce fixed costs by $20,000. Required: a) Determine the break-even point in units and $. (6) b) If maximizing net income is the objective, which is the best course of action (1, 2 or 3)? Show your working. (9) c) Looking back at each possible course of action (1, 2 or 3), rank the actions according to the level of difficulty in implementing it. Explain two (2) non-financial considerations would affect the decision. (5) (Total: 20) https://www.coursehero.com/file/14082129/BMAC5203-Exam-25-July-2015pdf/ This study resource was shared via CourseHero.com
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BMAC5203/HUTECH/JULY/F-KK 2 QUESTION 2 Marks ARJIMIM Sdn Bhd has been set up to sell a line of kitchen equipment. The company began its operations on January 2 with the following assets: Cash $14,000 Inventory $29,000 Land $31,000 Buildings and equipment $250,000 (useful life 20 years, no residual value) Sales for the first quarter (January, February, and March) is expected to be $140,000. The expected sales for the second quarter is $280,000 and for the third quarter is $325,000. Certain expenses are expected to vary with sales as follows: Percent of Sales $ Cost of goods sold 60 Bad debts 2 Variable selling expenses 14 Variable administrative expenses 5 The following are expenses not expected to vary with sales: Selling $25,000 per quarter Administrative $18,550 per quarter Depreciation $3,125 per quarter In addition: Three-fourths of the receivables will be paid in the quarter in which the sale is made and 24 percent in the following quarter. Sixty percent of merchandise purchased and two-thirds of the operating expenses will be paid in the quarter in which the purchase is made, and the balance in the following quarter. The ending inventory of each quarter should be equal to one-third of the amount of estimated cost of sales for the coming quarter. An additional $22,500 equipment investment will have to be made at the end of the second quarter to handle the increased sales volume expected in the third quarter. https://www.coursehero.com/file/14082129/BMAC5203-Exam-25-July-2015pdf/ This study resource was shared via CourseHero.com
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Subject: Accounting, Business
BMAC5203/HUTECH/JULY/F-KK PART A INSTRUCTIONS Part A contains TWO questions. Answer BOTH questions. QUESTION 1 Marks Setia Selalu Company reports the...
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