purchase from Greendayi? Please provide three relevant (3] reasons for your argument. [b marks] Question 2: Responsibility accounting and performance evaluation [15 marks] Hot House is an imestment centre ot the company cold Hut, The end of year results for Hot House are includod in the following table; Requred: 1. Caiculate the profit for the pear for Hot House. Ensure that pou show all inputs used. [2 marks] 2. Calculate the ROI that Hot House has actieved for the year. Commert on the perfonmance of Hot House compared with how they were expected to perform. Ensure that you show all inputs and formulas used. [3.5 marks] 3. Provide a calculation for the residual income ensuring that you show all inputs and formulas used. What does this figure mean for Hot House? [4 marks] 4. Provide a calculation for the EVA ensuring that you show all inguts and formulas used. What does your calculated figure mean for Hot House? [5.5 marks] Question 3 - Risk management and rewards [20 marks] 1. Training You are a client that are looking at intraducing a new training pockago for students who wish to study business. They are wanting your assistance in being able to help them with identifyirg the risks their business may face it they introduce this new training package. They have asked you to prepare a risk protile for them to consider before they proceed with ottering this riew traiming package to potential students. Required: Identify the types and sources of risks and pravide cxamples of two (2) risks to Training You far each risk that may relate to their business. [8 marks] 2. Training You are looking at recruiting salespecple to their business to assist them with finding sultable students to enroll in their new business course. As one of the performance targets for the salespeople they will have a budget for how many students they will need to have enroll in the new course. For every additional student abave their budget that enralls the salesperson will rective a borius. What do you see as being same of the issues that the business may face with this type of performance measure and bonus structure, Please provide two (2) issues that you think the business might face with this initiative. [6 marks] 3. You have hesn doine a considerable amount of rosearch into the concept of agency theory and have identified that there are agency costs that a business will face. You want to let Training You know about the uifferent types of agency costs that might arise for their business. Provide Training You with three agency costs that may apply to their business as weil as two (2) examples relating to esch agency cost that are relevant to their business. [o marks] Question 4 - Lean thinking and customer profitability [25 marks] CVo Enterprises supply DWD's to retall outlets nationally. They are concerred about the protitability of its throe largect customers. There appears to be increasing costs for the business in rolation to procossing of orders, cost of deliveries, administration, and marketing costs. Ovo Enterprises has asked you to prepare a customer analysis to determine which of these customers is the most prafitable and which custamer the loast prafitable for the business. You have alsa besn asked to provide recommendations as to haw the husiness could imprave the profitability of its custamers. Plaase find following information relating to three [3] of Dun Enterprises largest custamers. Dvo Enterprises have allocated casts to the key activities of the business based on suitable alocation rates and have come up with the following activity costs far the husiness in relation to their largest three customers. Requied: 1. Demonstrate using an apprapriate formula and calculations, how did DVD Enterprises calculate the order processing costs for the three customers? [o marks] 2. Calculate the contribution for each customer and total for the business using the data provided for each customer (sales, cost of goods sold and profit) [4 marks] 3. Who is the most profitable customer? Provide and explain in detall two (2) reasons why you think this is the case. [7 marks] 4. Provide DVD Enterprises with four [4 recommendations as to potential areas of change that could imprave relationships with customers and profitability for the business using lean thinking initiatives. You must provide detalled explanations and state why, glven the case you think this would be the best recommendation. [8 marks] 4. Which of these statements would not relate to the quality related activity of an internal activity for the business? (s) Inspecting units when they are complete and reworking ariy units that have faults (b) kepairing of machinery and equipment of the husiness to allow for a longer useful life (c) Having a notice up in the staff room of the factory that shows the exrployees how many defects in groducts have been found for the week. (d) Riedesigning products that are faulty in order to make improvements to the quality for the customer. Provide your justification belon: 5. The United Nations cutlines seventeen sustainable developenent goals that assists businesses with integrating some of these initiatives into their businesses. Which of goals is not one of the seventeen sustairible development goals that the United Nations has cutlined? (a) No poverty and no hunger (b) Equal Resource distribution between households and businesses (c) Responsible production and consumption (d) Clean energy that is affordable Provide your justitication below: 6. The value chain can be utilised for sustainability-related operations and used as a platform for strategies to strengthen any weak points in a business. Which sustainability activity would be relevant to outbound logistics based on the value chain's links? (a) Product desien and chaice of inputs (b) Fthical decieions ahout animal terting when designing a new product (c) Ethical advertising and pricing practices (d) Employee safety considerations around product handling and transportation Provide your justification helow: 7. Agency theory is based on the assumption that there will always be a conflict between owners and managers. Which of the follouing is a solution that can help to reduce agency costs? (a) Modifying (b) Measuring (c) Motluating (d) Modiate Provide your justification below: 8. Which of the following is a ckill that a management acrountant does not need to possess to perform theif work and add support to the managers in a business? a. The ability to communicate with extemal financlers as weil as the payroll team of a business, b. Ability to plan the hudgeting process and delegate certain tasks to key personnel within the finance team. c. The knowledge of providing the CEO with taxation planning advice for the upcoming year d. Monitor the financial performance of a sales department and provide recommendations for improvement where applicable. Provide your justification below: 9. The Interrutional Federation of Accountants has ideritified four roles that managernent accountants need to have in business today. Which of these is one of the roles? (a) Cuntroller of value (b) Founder of value (c) Preserver of value (d) Producer of value Provide your justification bellow: 10. Which of the following would not be a reasan for a thusiness peofer to pay cash incontivos to executives rather than share opticns? 8. The business has large free cash flows b. The husiness is concerned about oroding the value of the company's shares for their shareholders c. There are no growth opportunities for the business d. a focus on short term poals and results