Managerial Accounting (ACCM3204)
Faculty of Economics and Management Science (FEMS)
Semester: Second Semester
Level: 300
Year: 2018
Section A; COST ANALYSIS
CASE 1: BEP and rational imputation of fixed cost
The management of NICO tailoring workshop presents to you the following information for
2015:
Number of school uniforms produced and sold: 20,000frs
Unit selling price per uniform: 6,000frs
Unit variable cost per uniform 4,800frs
Annual fixed charge for a normal activity of 20,000 uniforms: 14,400,000frs
Required:
1- Present the differential operating table
2- Calculate in quantity and in value the BEP
3- Determine the BEP date in case of
a) Monthly regular activity
b) Monthly regular activity but with interruption in April and June
4- Calculate and interpret
a) The operating leverage
b) The security indexes
5- Calculate and interpret the difference of incorporation in case only 15,000 uniforms
were produced and sold in 2016
6- How many uniforms should be produced and sold if the company wants to make
generate a net operating result of 20,000,000frs
7- Let assume that 3.a was maintained in 2017 and after 3 months of activities, the
contribution margin ratio drops to 15% due to price fluctuations.
a) What is supposed to be in quantity and in value the new BEP
b) Present the situation graphically
CASE 2 sales budget /15 marks
The following information concerns the evolution of sales in relation to the number of
machines in service for seven consecutive months
months Jan Feb March April May Jun July
No. of
students
5 7 8 14 12 15 18
sales 70,000 91,000 112,000 126,000 154,000 175000 182,000
Required
a) Determine the correlation coefficient and comment on the results
b) Calculate the regression line that permits the determination of sales as a function of
number of machines
c) What will be the sales in August if the enterprise buys 2 additional machines?
CASE 3: PRODUCTION BUDGET/ 20 marks
Dala is a company that manufactures two products Sab and Dap. The technical department of
the company has allocated labor time for each of its three workshops and for each type of
product as follows:
product Blending workshop Coloring workshop Packaging workshop
Sab 6 hours 3.75 hours 2.25 hours
Dap 3 hours 3 hours 5 hours
THE UNIVERSITY OF BAMENDA
FACULTY OF ECONOMICS AND MANAGEMENT SCIENCES
2
nd
Semester Exam Course: Managerial Accounting: ACCT308
Credit Value:
Course Lecturers:
Time: Course Status: Date: 2018
Venue: Instruction:
www.schoolfaqs.net
Monthly capacity 4,200 hours 3,000hours 3600 hours
The contribution margin earned are 6000frs and 8000frs for each carton of Sab and Dap sold
respectively.
Work required:
a) State the objective function
b) Present the constraints as inequalities
c) Plot a linear graph to show clearly the feasible region with all its vertices
d) Determine the optimum production program that maximizes the contribution
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