Required cash flow from year 3: 690,000 - 240,000 ~ 210,000 = 150,000 (€50,000 = 200,000) x 12 mos. = 9 mos. 3.. Profit = 20%; Sales = 100%; Cost = 80% ‘Markup on cost: 20% + 80% = 25% “5. A Income = A Inventory x unit FFOH 5,000 = (20,000 ~ 18,000) unit FFOH Total FFOH: 2.50 (20,000) = P 50,000 6. £OQ: 18,000 + 15 = 1,200 units Ave. inventory: (1,200'+ 2) + 300 13, Unit variable costs (slope): AY + AX (1.392 M - 1.088 M) + (120,000 - 80,000) + 14, SR: P 3,600,000 + 240,000 1s SHSR: 21,000 hours x P 15 per hour “46. AFOH (V): 214,000 SFOH (Vv): 21,000 (10) 17) AFOH (V): 214,000 BAAH (V): 21,600 (10) 18, BASH (F): 100,000 SHSR (F): 21,000 (5) 119: PV Factor: 300,000 + 56,500 « 5.120 Gn BEPunes = Fixed costs = unit CM 20 OO amIOD + 225,000 + + (25,5 16) = Bank 2; 10% + 80% = 12.5% Bank 3: 11% + 89% = 12.36% 7, Learning curve: 9 mins 10 mins = 90% (90%) x8. Ee 10% (2,000) + 5 (20) + 12 (100) j 2 + 800 (25) + 100 (10) = 22,500 _ Traditional: 800% (2,000) = P' 16,000 MS final pre-board examinations (May 2011 batch) SOLUTIONS to SELECTED MS ITEMS 42. 95,000 + (23,000-20,000) - (85,000 - 70,000) 44, DL Variance: 4,000 U + 18,000 F = 14,000 F Payroll: SC ~ Variance = P 342,000 - 14,000 45, MCE Fatio: 3 days + 12 days 47, Wed. Ave. unit CM:-2-4(25%) + 1 (25%) = 1.75 BES! 280,000 + 1.75 = 160,000 Product B: 160,000 (25%) P.6 49, 9,66% = 70% (x) + 30 % (14%) ‘Tax rate: 100% - (7.8% + 12%) = 35% 51. Payout: 40% =P2+EPS EPS = PS Price-earnings ratio: P 20 +P 5 = 4 times, 54, Constraint functions: = Non-negativity constraint: B,C z 0 + Wood: B + 2¢ = 10,000 + Plastic: 28 +C < 10,000 + Direct labor: 2B + 2C = 12,000 56, 110 + (360/1.5) - 2(30) 57. 160,000 + 30,000 + 35,000- 58, 40% (190,000 + 5) x 0.909 '59. 20,000 (40 - 30) x 60% x 3.791 60), 35,000 (0.621) - 35,000 - Sn. ‘62, [60,000 (32 - 18)} 25% - 80,000 63,10 4-450 + 230 + 320 + 1.70 + © (9,000/20,000) 64. The: production costs, though variable, are “considered irrelevant because they are “historical (sunk) costs. “@5:-Continue: (P 43,000) ‘Em: 60,000 (2/12) 30% (32 - 18) = P-42,000 Fixed costs: 60,000 (2/12) x 8.50 = P 85,000 ‘sutdown: (P 58,090) FFOH: 60,000 (2/12) x 5 x 6096 = P 30,000 FSBA: 60,000 (2/12) x 3.5 x 80% = P 28,000 66, 10 + 4,50 + 2.30 + (0.75) 5 + 1.20(1/3) 67. (70. = 60) x 40% x 1,000 units x P 10 eae ae ‘Old AR balance: 10,000 x 34 days = 340,000 a es 2 oar 300,000: 68. Year 21: 20,000 ~ 500,000 = 4% “Year 20; 20,000 = 400,000 = 5% Year 16: 169% € 400,000 + 250,000