MAT130 RESIT/ALTERNATE EXAM

A product has a selling price of $80 per unit. Variable Costs are $60 per unit, and Fixed Costs are $80,000.

Budgeted Sales = 6,000 units.

Calculate and select the correct:

i. BREAK EVEN POINT in UNITS

ii. BREAK EVEN POINT in DOLLARS

iii. MARGIN OF SAFETY

• BEP = 4,000 units, $14,000 | Margin of Safety = 3325 units

• BEP = 4,000 units, $240,000 | Margin of Safety = 2,000 units

• BEP = 4,000 units, $800,000 | Margin of Safety = 5,000 units

• BEP = 4,000 units, $320,000 | Margin of Safety = 2,000 units

Select the graph which shows the BREAK EVEN CHART which corresponds to:

Revenue = 100x

VC = 50x

FC = 100,000

HINT: Calculate BEP in units and dollars

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Please check all that are TRUE of any Break Even Chart.

• Revenue starts at zero

• Variable costs can be found to the right of the break even point, between Revenue and Total Cost

• The Graph shows how the profit at an output of 6,000 units should be read

• The horizontal axis represents dollars and the vertical axis represents units

• At the BEP, Costs and Revenues are equal

Write the correct, simplified PROFIT FUNCTION, based on the following:

Selling Price: 80x

Cost Price: 40x

Fixed Costs: 100,000

FILL IN THE BLANK:

P(X) = _________________________ [fill in the blank]

Suppose US car sales analysis indicated that Tesla sold 1,333,332 vehicles in August of 2017, and the quantity sold in 2018 was 1,302,932 for the same period

Calculate the quantity relative for 2018 (2017 = 100), to one decimal place

From August 2017 to August 2018, the average price per vehicle was estimated to have decreased by 1.2%.

What is the price relative representing this change?

Explain the 2013 index number.

• There was a 3.1% increase in sales from 2010 to 2013

• There was a 3.1% increase in car sales from 2010 to 2013

• There was a 9.7% increase in car sales from 2010 to 2013

• There was a 9.7% increase in output from 2010 to 2013

Select all that are CORRECT, if you were to REBASE the series of index numbers on THE YEAR 2014, based on the image provided.

• To calculate, divide the index for each year by the previous year and then multiply by 100

• The answer for 2010 should be 100.0, after re-basing on 2014

• The answer for 2014 should be 100.0, after re-basing on 2014

• To calculate, use the index for 2014 as the denominator for each other year and then multiply by 100

• The answer for 2012 should be 95.3, after re-basing on 2014

Create a CHAIN-BASE series of index numbers, and select all answers that are CORRECT below

• 2010 = 100

• 2011 = 105.1

• 2012 = 105.6

• 2013 = 102.9

• 2014 = 101.9

Calculate:

i. MEAN (2 decimal places)

ii. VARIANCE (4 decimal places) and

iii. STANDARD DEVIATION (3 decimal places)

of possible returns, and select the correct answers:

• The mean = 0.164

• The Z-SCORE corresponding to a NEGATIVE RETURN = (0 - 0.2)/0.164

• The VARIANCE = 0.0293