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BUSS1 May 20th 2013

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Reply 100
Avatar for jasmiine
jasmiine
was the income budget question not something like ' what are the problems akanni might face setting an accurate income budget'? so it would be like, his market research wasn't extensive and was inaccurate so can't predict income etc? if it wasn't that then oops lol


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Original post by jasmiine
was the income budget question not something like ' what are the problems akanni might face setting an accurate income budget'? so it would be like, his market research wasn't extensive and was inaccurate so can't predict income etc? if it wasn't that then oops lol


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Yea it was I don't think it asked you to list the disadvantage. I said aswell that the market is a niche market and so it will be harder to predict. Not only that but the secondary research was 3 years old and from the USA making it even more inaccurate.
Reply 102
Avatar for samboJ
samboJ
11
Yeah I said that :smile:
Good, good i'm just convinced I messed up last question.
Reply 104
Avatar for nickprice
nickprice
Original post by Frostyjoe
Well I have the book here now and Contribution = Total Revenue - Total Variable costs and thats what I wrote too.

I hope we don't have to write it in words..



I think it said explain what is meant by total contribution, therefore i think you had to give a kind of definition. Not just the calculation... i don't know i just put both :frown:
Why isn't the break even 110000 units what the??
Reply 106
Avatar for jasmiine
jasmiine
Original post by Frostyjoe
Yea it was I don't think it asked you to list the disadvantage. I said aswell that the market is a niche market and so it will be harder to predict. Not only that but the secondary research was 3 years old and from the USA making it even more inaccurate.


yeah I said this too! and that he didnt have any previous figures to base his income on. good !


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Original post by samboJ
132,000 / 1.30 = 101,538.4615 -> Just done it on my calculator.

Therefore answer is 101,539. You round up because you have not yet broken even if you sell 101,538. You'd still be making a loss. (Albeit miniscule).


I think CPU was 1.25??


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I think I have pretty much got full marks on every other question apart from when it asked to work out the break even output for option A. I wrote the formulas for break even output and contribution per unit so max I will get 2 out of 5 marks. I divided the total amount of fixed costs to get fixed costs per unit when I shouldn't have bothered as you don't need to do that. I got the right answer 101... or w/e it was first then I changed my calculation (silly move) and wrote down the incorrect answer. Hopefully I got 55 0r 57 out of 60 and BUSS2 should be breezy fingers crossed.
(edited 10 years ago)
Oh great i'm more confident. I also said that he was told by his business advisor that he was unreliable. I'm not sure if thats relevant though. What about the trademark one?

I did this:

1. Definition.
2. Act as a USP differentiating its products.
3. Can be instantly recognisable to customers increasing profits.
4. Because of that he can increase his prices to an above average level.
Reply 110
Avatar for samboJ
samboJ
11
Original post by Skaterkid
Why isn't the break even 110000 units what the??


You divided fixed costs by the variable costs (132,000 / 1.2) instead of dividing fixed costs by contribution per unit (132,000 / 2.5-1.2=1.3) which equals 101,538.4615 which rounds up to 101,539.
Original post by Frostyjoe
Yea it was I don't think it asked you to list the disadvantage. I said aswell that the market is a niche market and so it will be harder to predict. Not only that but the secondary research was 3 years old and from the USA making it even more inaccurate.


The question is asking you that assuming his budgets were accurate, what problems would he face... Hard one.


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Original post by Sarah Richard
I think I have pretty much got full marks on every other question apart from when it asked to work out the break even output for option A. I wrote the formulas for break even output and contribution per unit so max I will get 2 out of 5 marks. I divided the total amount of fixed costs to get fixed costs per unit when I shouldn't have bothered as you don't need to do that. I got the right answer 101... or w/e it was first then I changed my calculation (silly move) and wrote down the incorrect answer. Hopefully I got 55 0r 57 out of 60 and BUSS2 should be breezy fingers crossed.

did any one else make an error on that question
Original post by dannyboyrises
The question is asking you that assuming his budgets were accurate, what problems would he face... Hard one.


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yay I wrote about the research being from 2010 and the USA and how his business is in the UK and the research is outdated and in another country making it more inaccurate
Reply 114
Avatar for samboJ
samboJ
11
Original post by dannyboyrises
I think CPU was 1.25??


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I don't think so. How did you get that? :s-smilie:
Reply 115
Avatar for jasmiine
jasmiine
Original post by dannyboyrises
The question is asking you that assuming his budgets were accurate, what problems would he face... Hard one.


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I don't think it was that, that would be a really strange question... reasons why it would be hard getting an accurate one seems much more relevant to me and there were lots of things on it within the case study


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Yea I don't think it was that either, if it was i've got it wrong.
Original post by Skaterkid
Why isn't the break even 110000 units what the??


I personally think it is


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Original post by jasmiine
I don't think it was that, that would be a really strange question... reasons why it would be hard getting an accurate one seems much more relevant to me and there were lots of things on it within the case study


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I hope it isn't buy those are my thoughts right now


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Reply 119
Avatar for samboJ
samboJ
11
Original post by jasmiine
I don't think it was that, that would be a really strange question... reasons why it would be hard getting an accurate one seems much more relevant to me and there were lots of things on it within the case study


Posted from TSR Mobile


No Jasmin it was that. It was 'explain the disadvantages of an accurate income budget'.

I put:

1. Only covers revenue -> can't work out profit.
2. Adverse variance can be demotivating.

etc. etc. but I applied loads.

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