Question 1

Information about a company's only two products is as follows:

The revenue from the products must be in the constant mix of 2U:3V. Budgeted monthly sales revenue is $110,000.
Fixed costs are $23,095 each month.
To the nearest $10, what is the budgeted monthly margin of safety in terms of sales revenue?

Options :

A : $35,500

B : $74,500

C : $12,140

D : $38,940

Answer: A

Question 2

Two products being produced by a company require the same material which is limited to 2,600 kgs.

What is the optimal production plan?

Options :

A : 500 units of S & 100 units of T

B : 50 units of S & 400 units of T

C : 400 units of S & 167 units of T

D : 500 units of S & 400 units of T

Answer: A

Question 3

Some of the movements in a time series follow a pattern over time.
Which type of movement does NOT follow a pattern over time?

Options :

A : Trend

B : Cyclical variation

C : Random variation

D : Seasonal variation

Answer: C

Question 4

D3 makes 2 types of toilets - the Executive (Ex) and the Classic (CI). Direct labour costs $6 per hr and overheads are absorbed on a machine hour basis. The overhead absorption rate for the period is $28 per machine hour. What is the traditional cost per unit for (Ex) and (CI)?

Options :

A : (Ex) 60, (CI) 56

B : (Ex) 58, (CI) 53

C : (Ex) 65, (CI) 49

D : (Ex) 62, (CI) 52

E : (Ex) 63, (CI) 48

Answer: C

Question 5

A company is preparing its annual budget and is estimating the number of units of Product W that it will sell in each quarter of year 2. Past experience has shown that the trend for sales of the product is represented by the following relationship:

Calculate the expected unit sales of Product W for each quarter of year 2, after adjusting for seasonal variations using the multiplicative model.

Options :

A : The sales forecast for year 2 Quarter 4 = 35,100 units

B : The sales forecast for year 2 Quarter 4 = 25,100 units

C : The sales forecast for year 2 Quarter 4 = 22,600 units

D : The sales forecast for year 2 Quarter 4 = 38,100 units

Answer: A

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