Advanced Management Accounting Paper

Q7 b) Entertain U is bit tricky & most of the students are getting different different answers

According to me the answer should be (I may be wrong)

Assured Revenue = (9600 + 39600 + 10800 + 9000) = 69000

Committed Cost    = (71000 + 14000 + 7400 + 6600) = 99000

So the cost to be recovered for break even                    = 30000

**** 6600 cost  = Snacks for assured 330 guest

 

Option 1 (Tickets to be sold in ratio of 1:3:1 to recover 30,000)

Since 20 Rs is variable cost for snacks,net benefit will be 300, 200 & 100

Thus by selling    VIP = 30 tickets /  Mid = 90 tickets / Last = 30 tickets

Company will recover 30,000 and will breakeven.

Category wise occupancy at break even

VIP = 90

Mid = 270

Last = 120

 

Option II (Tickets to be sold in ration of 2:2:5 to recover 30,000)

Again, since 20 Rs is variable cost for snacks,net benefit will be 300, 200 & 100

To follow & maintain the ratio allotment to be done in 3 steps

I allotment in ratio = VIP 30 / Mid 30 / Last 75 (1st row fully sold)

II allotment in ratio = VIP 0 / Mid 6   / Last 15 (3rd row fully sold)

III allotwent in ratio = VIP 0 / Mid 24 / Last 0

 

To recover 30,000 addtional ticket sold = VIP 30 / Mid 60 / Last 90

Category wise occupancy at break even

VIP = 90

Mid = 240

Last = 180

Q1 a) Seems no has posted the answer on this till now

My Answer

Productwise Sales Margin Price Variance :  A = 4000 (F)   /   B = 15000 (A)

Productwise Sales Margin Mix Variance    :  A = 4800 (F)   /   B =   2400 (A)

@ RAJAT YES 7B ANSWER OF FIRST PARTWOULD BE VIP-90 MIDLE 270 & LOWER 120 MINE R SAME ........TOTAL REVENUE TO BE RECOVERED = 71000+14000+7400-9000+(30*20)=84000

NOW REVENUE (1:3:1) 

VIP = (90-30*300)=18000

MIDDLE 270*200=54000

LOWER  120*100=12000 TOTAL 18000+54000+12000=84000 THIS THE BEP...

Q.1(c) committed costs are i,iii,v Q.3(a) assignment step-II as under T1-7,5,5,0,3 T2-9,6,3,0,6 T3-7,3,0,0,4 T4-0,0,2,0,0 other ans. Of Q3.a) Correctly given by rajat Q.3b) i m nt sure if anyone knw ans then plz post here. Q.3.c) total contn of x,y,z are 8000,6000 and 4500 respectively. As co. Can produce only one product so opp.cost for X is 6000 (higher of other two) same way for Y, 8000 and for z also 8000.

Ans of Q.1(a) sales margin price variance for product A is 16000A and for B is 30000F

expecting a bit lenient marking in costing as paper was tricky as compared to laste attempt as well as lengthy also.

Originally posted by : Rajat
	Q6 c) Maruti Agency will do better in opting for advance version Incremental Benefit = 15,00,000 (5000 x 30 x 10 months) Incremental Cost = 10,60,576 (3,55,000 + 1,70,400 + 5,35,176 material wastage) Net Benefit = 4,39,424   Q7 a) Prediction of 5 days of Demand Day1 = 5 / Day2 = 6 / Day3 = 7 / Day4 = 6 / Day5 = 8 So Average no of cars rented per day = 6.40 car Rental lost over 5 days = 3 rentals (1 on 3rd day & 2 on 5th day)

Dont Agree with 7(a).. i got 5.80 . . . you have maximum 6 cars..so on day 3 and 5 only 6 car will be rented.

average= (5+6+6+6+6)/5= 5.80

Ans of Question No.4(d)?

VAM is better.. it involves more systematic process of calculating penalties instead of arbitrarily assigning anywhere.. Solution of VAM is much closer to optimal solution.