Financial Math Answers

If the rate at 1.25 % effective, how long will Php 5,000 become Php 5,500?

Currently, Teddy Inc. manufactures part CD7 used in the production of its product, producing 8,000 units annually. An outside supplier is offering to sell the part to Teddy for RM16. The cost of manufacturing CD7 is as follows:

Direct materials RM9.00 , Direct labour = 3.00, Variable overhead=2.50, Fixed overhead=4.00 and the TOTAL=RM18.50

Of the total overhead assigned to CD7, RM28,000 is direct fixed overhead (i.e. the amount is not needed if the product line is dropped). The remaining fixed overhead is common fixed overhead. There is no alternative use for facilities currently used to produce the part.

a.     Should Teddy accept the offer from the outside supplier? What is the most that Teddy is willing to pay?

b.     Can direct material ever be irrelevant in a make-or-buy decision?

Financial information pertaining to Neutron-X Sdn Bhd above follows:

Beginning cash balance is RM180,000

Sales are on credit and are collected 50 percent in the current period and the remainder in the next period. Last quarter’s sales were RM840,000. There are no bad debts.

Purchases of direct materials and labor costs are paid for in the quarter acquired.

Manufacturing overhead expenses are paid in the quarter incurred.

Selling and administrative expenses are all fixed and are paid in the quarter incurred. They are budgeted at RM34,000 per quarter, including RM9,000 of depreciation.

Refer to the sales budget prepared in Task 1. Construct a cash budget for Neutron-X Sdn Bhd for the quarter ending 31^st December 2021.

Queenie Cocoa manufactures nutritious cocoa powder packaged for local market. The product is sold in boxes at RM40 per unit. The cost incurred to manufacture and market the product follows: Cost Schedule:1. Variable Costs per Box (RM) *Direct Unit=12, Direct Labour per unit=6, Manufacturing overhead=5, selling and administrative=3. 2.Fixed Costs(RM): Manufacturing overhead=300,000 and selling and administrative=120,000    

In the first year of its operation, Queenie Cocoa manufactures 50,000 boxes of which 42,000 boxes were sold. (a)   Prepare a contribution margin income statement. (b)  Calculate Queenie’s break-even point in units and ringgit. (c)   Calculate the units that Queenie must sell to achieve an after-tax profit target of RM210,000? Assume the tax rate is 40%. Indicate the margin of safety in units, at this point. (d)  Queenie wishes to incur and additional selling expense of RM35,000, other costs remain constant. Calculate the new break-even point in RM.

Kasia Manufacturing Company has developed the following standards for one of their products:STANDARD VARIABLE COST CARD, ONE UNIT OF PRODUCT

Direct materials:  20 square meters at RM5 per square foot RM100.00

Direct labor:       8 hours at RM6 per hour- 48.00

Variable overhead:  8 hours at RM3 per hour-24.00

Total standard variable cost per unit -RM172.00

The company records materials price variances at the time of purchase.

The following activities occurred during the month of July:

Materials purchased:150,000 square metersat RM5.25 per sq. foot

Materials used:96,000 square meters

Units produced:5,000 units

Direct labor:41,000 hours at RM6.55 per hour

Actual variable overhead:RM238,000

Required:

Compute the following variances and indicate whether they are favorable (F) or unfavorable (U).

a. Material price variance? b.Material usage variance? c.Direct labourrate variance? d.Direct labor efficiency variance? e.Variable overhead spending variance? f. Variable overhead efficiency variance?  

Mr. Rakib has two policies A & B for property X & Y. Solve the following problem under

two condition of average. Available information are as follows:

Policy :

A. Sum insured Tk. 1000 for property X&Y

B. Sum insured Tk. 650 for property X

Value of the property

Property X: Tk. 1000

Property Y: Tk.1000

Requirements: How following loss will be shared?

a) Loss of property X for Tk.750

b) Loss of Property Y for Tk. 900

A loan of 10000 is to be repaid over 10 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on a basis od an interest rate of 1% per month effective,. For which monthly repayment the capital first exceeds the interest

Let us assume that we belong to a diversified investment is equally capitalised in default free acid and do securities if one of the securities has a systematic risk coefficient of .85 what must be the better for the other stock of the total portfolio risk and market risk is not different

Pn. Rohani earns RM3000 a month working in Berjaya Sdn. Bhd. and she uses 40% of her monthly salary for utilities and other expenses. To improve the quality of education, she decided to pursue higher education, and she intends to apply for a personal loan from a local bank to cover the cost of her studies which is estimated to be RM102,000 for 4 years. You are a financial advisor who does not favor any financial institution and Pn. Rohani asked for your advice to decide to choose the bank that fits her income and living expenses. She brought two pamphlets containing the loan schedule and payment period from different banks. Based on given information, provide reasonable arguments and evidence to evaluate the two loan offers provided by Pn. Rohani. Next, suggest to her which bank to choose from. Create a loan amortization schedule using EXCEL to show the relevant information to Pn. Rohani (Refer EXCEL Tutorial).