Please I need help in solving this Management & Cost Accounting questions, especially the calculation questions (1b), (2) & 3. Thanks

MBIGO Marowdown TOTAL MARKS (100 Marks) INSTRUCTION: Anwwer ALL yans QUESTION Nano Limited manufactures a range of cable products for the electronics industry. The company has been notified of an upcoming searce availability situation in relation to a raw material called Rhendium', a metal used in the production of three of the company's cable products. The maximum availability of this material will be restricted to 15,000 metros in the upcoming quarter You have been asked by the production manager to make appropriate changes to the production budget for these three cable products and have received the following resource usage information for each product Note Cablex Cable Y Cable z 1 300 metres 250 metres 500 metres Length of 1 production roll Resources required to make 1 roll VARIABLE COST ITEMS Materials Rhodium Plastic Labour time 2315 metres 26 lalos 3 12 hours 260 metros 505 metres 5 kilos 12 kilos 12 hours 36 hours FIXED COST ITEMS Machine time 24 hours 24 hours 36 hours Notes: 1. Each type of cable is prochaced in standard lengths as indicated in the above table. It is not possible to produce any other roll length due to the need to comply with industry standards 2. Each production roll of cable requires a length of 'Rhondium which includes a waste allowance. The amount wasted is sold for scrap and cannot be used to make up other rolls. Rhodium costs RM 20 per metre and plastic costs RM 10 per kilo. (Scrap proceeds can be ignored for the purposes of this question) 3. Labour is charged at a rate of RM 13 per hour. 4. Machine time is charged at a rate of RM 30 per hour. Additional information: The sales prices of production roll of the different types of cable are as follows: Page 2 of 10 MBA 03 Mawar Cable X RM 12,186 Cable Y RM 10.216 Cable Z z RM 15,738 Sales price per production roll The company is contractually obliged to supply 1,500 metres of each type of cable to a key customer in the forthcoming quarter. This contract cannot be broken despite the shortage of Rhodium and must be given top priority ahead of other sales orders. The maximum anticipated demand for each type of cable in the forthcoming quarter (including the 1.500 metres of each type of cable detailed in the previous c) is as follows: Customer demand Cablex Cable Y Cable z 6,600 metres 3.500 metros 4,500 metros Required: a. Briefly outline the meaning of the term "limiting factor and explain how an organisation constrained by "limiting factors" should determine optimal production kovels (10 marks) b. Compute the optimal production levels of each type of cable for the upcoming quarter and the closing quantity of Rhondium remaining in stock (if any) at the end of the quarter (30 marks) Total: 40 MARKS Page 3 of 10 MBA 61/63 Management and Cost Accounting QUESTION 2 Coffeeworks Limited manufactures coffee machines for domestic use. The management of the company is considering next year's production and has asked you to help with certain financial decisions The following information is available: Selling price (per machine) RM 80 Direct materials (per machine) RM 25 Direct labour (per machine) RM 30 Fixed production overheads RM 270,000 per year The company is planning to manufacture 15,000 coffee machines next year, a) Determine the following i. The marginal cost per coffee machine ii. The absorption cost per coffee machine iii. The break-even point in term of Unit iv. The break-even point in term of Unit Sales Volume v. The Margin of Safety (10 Marks) b) Prepare a statement of profit or loss (Using Marginal Costing Approach) to show the profit or loss if 15,000 coffee machines are sold (5 Marks) The production manager is proposing the use of new machinery that will reduce the material cost by 8% and the labour cost by 10%. The new machinery will have an additional fixed cost of RM 60,000. The production manager is asking for your advice whether the new machine benefit Coffeeworks. c) Based on information above, determine the following i. The new marginal cost per coffee machine ii. The new break-even point in term of Unit Calculate the new Margin of Safety (6 Mark) iv. Prepare a new statement of profit or loss (Using Marginal Costing Approach) to show the profit or loss if 15,000 coffee machines are sold (3 Marks) Page 4 of 10 MRA 60163 Management and Cost Accounting d) Advise the Production Manager on the proposal of new machine (6 Marks) QUESTION 3 SMC is a large company which, for many years, operated solely as a pay-tv broadcaster, However, five years ago, it started product bundling, offering broadband and telephone services to its pay-tv customers. Customers taking up the offer were then known in the business as "bundle customers' and they had to take up both the broadband and telephone services together with the pay-tv service. Other customers were still able to subscribe to pay- tv alone but not to broadband and telephone services without the pay-tv service. All contracts to customers of SMC are for a minimum three-month period. The pay-tv box is sold to the customer at the beginning of the contract; however, the broadband and telephone equipment is only rented to them. In the first few years after product bundling was introduced, the company saw a steady increase in profits. Then, SMC saw its revenues and operating profits fall. Consequently, staff bonuses were not paid, and staff became dissatisfied. Several reasons were identified for the deterioration of results: 1. In the economy as a whole, discretionary spending had been severely hit by rising unemployment and inflation. In a bid to save cash, many pay-tv customers were cancelling their contracts after the minimum three-month period as they were then able to still keep the pay-tv box. The box comes with a number of free channels, which the customer can still continue to receive free of charge, even after the cancellation of their contract 2. The company's customer service call centre, which is situated in another country, had been the cause of lots of complaints from customers about poor service, and, in particular, the number of calls it sometimes took to resolve an issue. 3. Some bundle customers found that the broadband service that they had subscribed to did not work. As a result, they were immediately cancelling their contracts for all services within the 21 day cancellation period permitted under the contracts In a response to the above problems and in an attempt to increase revenues and profits, SMC made the following changes to the business: 1. It made a strategic decision to withdraw the pay-tv broadband telephone package from the market and, instead, offer each service as a standalone product, 2. It guaranteed not to increase prices for a 12-month period for each of its three services. 3. It transferred its call centre back to its home country and increased the level of staff training given for call centre workers. 4. It investigated and resolved the problem with customers' broadband service. Page 5 of 10 MBA 6063 Management and Cour Accounting It is now one year since the changes were made and the finance director wants to use a balanced scorecard to assess the extent to which the changes have been successful in improving the performance of the business. Required: a) For each perspective of the balanced Scorecard, identify two goals (objectives) together with a corresponding performance measure for each goal which could be used by the company to assess whether the changes have been successful. Justify the use of each of the performance measures that you choose. (20 marks) b) Discuss how the company could reduce the problem of customers terminating their pay-tv service after only three months. (10 marks) Total: 30 Marks MBIGO Marowdown TOTAL MARKS (100 Marks) INSTRUCTION: Anwwer ALL yans QUESTION Nano Limited manufactures a range of cable products for the electronics industry. The company has been notified of an upcoming searce availability situation in relation to a raw material called Rhendium', a metal used in the production of three of the company's cable products. The maximum availability of this material will be restricted to 15,000 metros in the upcoming quarter You have been asked by the production manager to make appropriate changes to the production budget for these three cable products and have received the following resource usage information for each product Note Cablex Cable Y Cable z 1 300 metres 250 metres 500 metres Length of 1 production roll Resources required to make 1 roll VARIABLE COST ITEMS Materials Rhodium Plastic Labour time 2315 metres 26 lalos 3 12 hours 260 metros 505 metres 5 kilos 12 kilos 12 hours 36 hours FIXED COST ITEMS Machine time 24 hours 24 hours 36 hours Notes: 1. Each type of cable is prochaced in standard lengths as indicated in the above table. It is not possible to produce any other roll length due to the need to comply with industry standards 2. Each production roll of cable requires a length of 'Rhondium which includes a waste allowance. The amount wasted is sold for scrap and cannot be used to make up other rolls. Rhodium costs RM 20 per metre and plastic costs RM 10 per kilo. (Scrap proceeds can be ignored for the purposes of this question) 3. Labour is charged at a rate of RM 13 per hour. 4. Machine time is charged at a rate of RM 30 per hour. Additional information: The sales prices of production roll of the different types of cable are as follows: Page 2 of 10 MBA 03 Mawar Cable X RM 12,186 Cable Y RM 10.216 Cable Z z RM 15,738 Sales price per production roll The company is contractually obliged to supply 1,500 metres of each type of cable to a key customer in the forthcoming quarter. This contract cannot be broken despite the shortage of Rhodium and must be given top priority ahead of other sales orders. The maximum anticipated demand for each type of cable in the forthcoming quarter (including the 1.500 metres of each type of cable detailed in the previous c) is as follows: Customer demand Cablex Cable Y Cable z 6,600 metres 3.500 metros 4,500 metros Required: a. Briefly outline the meaning of the term "limiting factor and explain how an organisation constrained by "limiting factors" should determine optimal production kovels (10 marks) b. Compute the optimal production levels of each type of cable for the upcoming quarter and the closing quantity of Rhondium remaining in stock (if any) at the end of the quarter (30 marks) Total: 40 MARKS Page 3 of 10 MBA 61/63 Management and Cost Accounting QUESTION 2 Coffeeworks Limited manufactures coffee machines for domestic use. The management of the company is considering next year's production and has asked you to help with certain financial decisions The following information is available: Selling price (per machine) RM 80 Direct materials (per machine) RM 25 Direct labour (per machine) RM 30 Fixed production overheads RM 270,000 per year The company is planning to manufacture 15,000 coffee machines next year, a) Determine the following i. The marginal cost per coffee machine ii. The absorption cost per coffee machine iii. The break-even point in term of Unit iv. The break-even point in term of Unit Sales Volume v. The Margin of Safety (10 Marks) b) Prepare a statement of profit or loss (Using Marginal Costing Approach) to show the profit or loss if 15,000 coffee machines are sold (5 Marks) The production manager is proposing the use of new machinery that will reduce the material cost by 8% and the labour cost by 10%. The new machinery will have an additional fixed cost of RM 60,000. The production manager is asking for your advice whether the new machine benefit Coffeeworks. c) Based on information above, determine the following i. The new marginal cost per coffee machine ii. The new break-even point in term of Unit Calculate the new Margin of Safety (6 Mark) iv. Prepare a new statement of profit or loss (Using Marginal Costing Approach) to show the profit or loss if 15,000 coffee machines are sold (3 Marks) Page 4 of 10 MRA 60163 Management and Cost Accounting d) Advise the Production Manager on the proposal of new machine (6 Marks) QUESTION 3 SMC is a large company which, for many years, operated solely as a pay-tv broadcaster, However, five years ago, it started product bundling, offering broadband and telephone services to its pay-tv customers. Customers taking up the offer were then known in the business as "bundle customers' and they had to take up both the broadband and telephone services together with the pay-tv service. Other customers were still able to subscribe to pay- tv alone but not to broadband and telephone services without the pay-tv service. All contracts to customers of SMC are for a minimum three-month period. The pay-tv box is sold to the customer at the beginning of the contract; however, the broadband and telephone equipment is only rented to them. In the first few years after product bundling was introduced, the company saw a steady increase in profits. Then, SMC saw its revenues and operating profits fall. Consequently, staff bonuses were not paid, and staff became dissatisfied. Several reasons were identified for the deterioration of results: 1. In the economy as a whole, discretionary spending had been severely hit by rising unemployment and inflation. In a bid to save cash, many pay-tv customers were cancelling their contracts after the minimum three-month period as they were then able to still keep the pay-tv box. The box comes with a number of free channels, which the customer can still continue to receive free of charge, even after the cancellation of their contract 2. The company's customer service call centre, which is situated in another country, had been the cause of lots of complaints from customers about poor service, and, in particular, the number of calls it sometimes took to resolve an issue. 3. Some bundle customers found that the broadband service that they had subscribed to did not work. As a result, they were immediately cancelling their contracts for all services within the 21 day cancellation period permitted under the contracts In a response to the above problems and in an attempt to increase revenues and profits, SMC made the following changes to the business: 1. It made a strategic decision to withdraw the pay-tv broadband telephone package from the market and, instead, offer each service as a standalone product, 2. It guaranteed not to increase prices for a 12-month period for each of its three services. 3. It transferred its call centre back to its home country and increased the level of staff training given for call centre workers. 4. It investigated and resolved the problem with customers' broadband service. Page 5 of 10 MBA 6063 Management and Cour Accounting It is now one year since the changes were made and the finance director wants to use a balanced scorecard to assess the extent to which the changes have been successful in improving the performance of the business. Required: a) For each perspective of the balanced Scorecard, identify two goals (objectives) together with a corresponding performance measure for each goal which could be used by the company to assess whether the changes have been successful. Justify the use of each of the performance measures that you choose. (20 marks) b) Discuss how the company could reduce the problem of customers terminating their pay-tv service after only three months. (10 marks) Total: 30 Marks