University of Information Technology and Sciences

Department of Business Studies

Course- IOM, Code: GED-115
Semester- Spring-2020, Final Assessment -70 Marks
Time: 3 hours
Question Number 1: Follow the chart and answer the question stated below. Marks- 20

Sales Representative Sales Calls Copiers Sold

Tom 20 30
Jeff 40 60
Brian 20 40
Greg 30 60
Susan 10 30
Carlos 10 40
Rich 20 40
Mike 20 50
Mark 20 30
Sony 30 70
Total 220 450

The sales manager gathered information on the number of sales calls made and the number of
copiers sold for a random sample of 10 sales representatives. As a part of her presentation at the
upcoming sales meeting, Ms. Bancer, the sales manager, would like to offer specific information
about the relationship between the number of sales calls and the number of copiers sold. Use the
least squares method to determine a linear equation to express the relationship between the two
variables. What is the expected number of copiers sold by a representative who made 20 calls?

Question Number 2: Aroma limited produce T-shirt. Basically, two types of T-shirts it
produces. Following table describe the materials needed and resources available in Aroma
limited. Marks- 10

Name Department 1 Department 2 Selling price

T-shirt 1 7 min 4 min 10 per
T-shirt 2 4 min 8 min 15 per

Available resources in department 1 are 100 minutes & in department 2 it is around 150 minutes.
Requirement: Determine the optimum quantity that will maximize the profit of Aroma ltd under
linear programming approach
Question Number 3: Max Company limited follows the periodic inventory management system.
In 2019, the following transactions have taken place in the business of Max Company.
 Marks- 20

Transaction Date Explanation Price Quantity

January Beginning Inventory 30 500
February Purchase 20 600
March Purchase 50 450
April Sales 40 500
May Purchase 70 100
June Sales 50 500
July Sales 15 500
August Purchase 10 150
September Purchase 50 400
October Sales 65 600
November Sales 35 50
December Sales 25 150
December Purchase 20 100

Find out the following requirements:

a. Ending inventory value under LIFO, FIFO and weighted average cost method.

b. Shows the impact of cost changes under three different approaches on the profit potential of
the company in the each financial year. Consider tax rate is 27% for this calculation.