Ministry of Higher Education

Final Term Exam

High Institute of Engineering and
Summer-Term – Third Year
Technology (HIET)
Academic Year: 2022/2023
El-Mahalla El-Kobra

Department: Mechatronics Course Code: MTH 421 Course: Feasibility Study

Course Instructor: Dr Ma El-wazery Date: September, 2023 Time: 2 Hours

Solve Question 1 then choose 4 questions to solve:

‫ ﺛﻢ اﺧ ﺘﺮ أر ﺑﻌ ﺔ أﺳ ﺌﻠﺔ ﻓﻘﻂ و ﻗﻢ ﺑﺤ ﻠﮭ ﺎ‬، ‫ﻗﻢ ﺑﺎﻹ ﺟ ﺎﺑﺔ ﻋ ﻠﻰ اﻟﺴ ﺆ ال اﻷ و ل‬

Question 1
(a) Consider the following locations with their corresponding locations and fixed and variable associated cost
as shown in the following table. Find the best location using the center of gravity method and the break-
even analysis.

Location (x, y) Fixed cost per year Variable cost per unit
A (2.5, 4.5) $350,000 $55
B (3.5, 2.5) $450,000 $38
C (4.5, 4.5) $250,000 $35
D (5, 2.5) $200,000 $30
Hint: assume the production quantity per year.

(b) You have to study the relationship between the forecasted monthly sales (y) and the advertising costs (x).
You have the survey results for 6 months. Your task is to find the equation of the straight line that fits the
data best.

Month Advertising (x) Sales (y)

January 3 1

February 5 2

March 2 1

April 4 3

May 4 2

June 2 1

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Question 2
(a) List the issues that the technical feasibility study should answer or address?
(b) What information an equipment supplier responds to his prospective clients with?
(c) How could you estimate the cash requirements when starting a project?

Question 3
(a) What is the income statement (the profit and loss account)? What are the main inputs and outputs
of this statement?
(b) What are the main components of a balance sheet? How are they related by the accounting
equation?
(c) Explain briefly the three categories of activities that affect the cash flow statement.

Question 4
(a) Differentiate briefly between feasibility study and business plan: (time precedence - time of start
- contents - frequency of conducting).
(b) State in brief the questions that the market research answer.
(c) What are the sources of secondary data in the market research?

Question 5
(a) Define sampling. Why it is important in the context of market research?
(b) What does the “tailoring the marketing mix” mean?
(c) Explain briefly the “Guerrilla marketing”

Question 6
(a) Mention briefly the four market positions that can a new product seek to?
(b) What is market segmentation and what criteria does it include?
(c) State the difference between the lag and lead strategy, and how they affect planning the capacity
of a plant?

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