5/26/24, 2:04 PM PM Test 4

PM Test 4
* Indicates required question

1. Email *

2. Student Name *

3. Section A

ALL questions are compulsory and must be attempted.

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4. 1. 2 points

Mark only one oval.

The margin of safety is 40%

The contribution to sales ratio is 24%

The volume of sales needed to make a profit of $270,000 is 45,000 units

If budgeted sales increase to 40,000 units, budgeted profit will increase by $100,000

5. 2. 2 points

Check all that apply.

A
B
C
D

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6. 3. 2 points

Mark only one oval.

Increase the selling price of product Z by 10%

Increase the selling price of product Y by 10%

Reduce the material cost of product Z by 5%

Reduce the material cost of product Y by 5%

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7. 4. 2 points

Mark only one oval.

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8. 5. 2 points

Mark only one oval.

$270

$590

$750

$840

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9. 6. Jorioz Co makes joint products X and Y. $120,000 joint processing costs 2 points
are incurred.

At the split-off point, 10,000 units of X and 9,000 units of Y are produced, with
selling prices of $1.20 for X and $1.50 for Y.

The units of X could be processed further to make 8,000 units of product Z.

The extra costs incurred in this process would be fixed costs of $1,600 and
variable costs of $0.50 per unit of input.

The selling price of product Z would be $2.25.

What would be the outcome if product X is further processed?

Mark only one oval.

$600 loss

$400 gain

$3,900 gain

$1,600 loss

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10. 7. 2 points

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11. 8. 2 points

Mark only one oval.

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12. 9. 2 points

Mark only one oval.

13. 10. 2 points

Mark only one oval.

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14. 11. 2 points

15. 12. Indicate whether each of the following statements regarding the 2 points
existence of multiple objectives in not-for-profit organizations is correct or
incorrect.

Mark only one oval per row.

Correct Incorrect

They ensure
goal
congruence
between
stakeholders

Compromise
between
objectives
can be
problematic

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16. 13. 2 points

Mark only one oval.

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17. 14. 2 points

Mark only one oval.

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18. 15. In an investment centre, a divisional manager has autonomy over 2 points

negotiating all selling prices, has local functions set up for payables,
inventory and cash management, and uses a full debt factoring service.

Indicate which of the following the divisional manager should be held

accountable for.

Mark only one oval per row.

Not
Accountable
accountable

Transfer
prices

Management
of working
capital

19. Section B

ALL THREE questions are compulsory and must be attempted.

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20. HARE EVENTS

21. HARE EVENTS

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22. 16. If Hare Events decides to host only the full marathon race, what is the 2 points
margin of safety?

Mark only one oval.

35.0%

47.7%

52.3%

65.0%

23. 17. Assuming that the race entries are sold in a constant sales mix based on 2 points
the expected race entry numbers, what is the sales revenue Hare Events
needs to achieve in order to break even (to the nearest $'000)?

Mark only one oval.

$385,000

$575,000

$592,000

$597,000

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24. 18. 2 points

Mark only one oval.

25. 19. 2 points

Mark only one oval.

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26. 20. 2 points

Mark only one oval.

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27. Romeo Co

28. Romeo Co

29. 21. What was the total favorable material price variance for Month 3? (to two 2 points
decimal places)?

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30. 22. 2 points

Mark only one oval.

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31. 23. In Month 4, Romeo produced and sold 110 basic tomato pizzas. Actual 2 points

results were as follows.

Mark only one oval.

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32. 24. 2 points

Mark only one oval.

33. 25. 2 points

Check all that apply.

A
B
C
D

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34. Sweet Treats Bakery

35. Sweet Treats Bakery

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36. Sweet Treats Bakery

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37. 26. 2 points

Mark only one oval.

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38. 27. On Wednesday, the mixing process is identified as the bottleneck process. 2 points
On this day, only 120 minutes in the mixing process are available.

Mark only one oval.

39. 28. 2 points

Check all that apply.

A
B
C
D

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40. 29. 2 points

Mark only one oval.

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41. 30. In a previous week, the weighing process was the bottleneck and the 2 points

resulting throughput accounting ration (TPAR) for the bakery was 1.45.

Indicate whether each of the following statements about the TPAR for the
previous week are true or false.

Mark only one oval per row.

True False

The
bakery's
operating
costs
exceeded
the total
throughput
contribution
generated
from its
three
products.

Less idle
time in the
mixing
department
would have
improved
the TPAR.

42. Section C

ALL TWO questions are compulsory and must be attempted.

43. 31. Statice Co * 20 points

Files submitted:

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44. 32. Thatcher International Park (TIP) * 20 points

Files submitted:

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