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OCR Business Studies F297 2016 - VGL Case Study watch

1. (Original post by Lewis7_)
So lets look at it this way:

They buy 100 tonnes of textiles for £300 per tonne = £30000 costs

They sell 10% of it at £300, 20% at £400 and so on.. following the table on the BEP thing - This gives them a total revenue of £51,000

Minus direct costs = £21,000 Gross Profit.

There is then the fixed costs of £100,000 per year and £80,000 start up - Lets say it takes 8 years to pay off the startup costs, so £10,000 a year.
That puts our yearly fixed costs at £110,000. Divide that by 52 (there are 52 weeks in a year.) and you get £2115, this is their WEEKLY FIXED COSTS.

Work out the BEP by using Fixedcosts/Contribution(Gross Profit) and you get 0.1, which is 10 tonnes per week to break even.

190tonnes x 21000(revenue) = 3,990,000 weekly profit should they work off the 200 tonnes a week quota (Which is stupid to even try suggest, good job Michael! :P )

-Quote from a PM i sent.-
how did you get 100,000 fixed cost per year to 110,000? where did the100 came from ? sorry to ask too much but your expansion is really helpful thank you
2. I've just been trying to find TSA past papers but found one with profitability ratios.. I was told these were the same as activity ratios but they aren't, it only awards ROCE, ROE, GPM and NPM. ok I'm freaking out a bit, there's so many ratios 😭😰
3. (Original post by alevel0620)
how did you get 100,000 fixed cost per year to 110,000? where did the100 came from ? sorry to ask too much but your expansion is really helpful thank you
Martins says on page 6 "Budgeted £100,000 annually for running costs"
4. (Original post by Lewis7_)
http://imgur.com/a/b50Yb

Its an album! Scroll down
That just takes me to a new post :0 my phone is tripping 😂
5. (Original post by lucy112233)
What formulas should I know for the exam? I don't know any
http://i.imgur.com/qGhhMyO.jpg

Them.
6. (Original post by BlackDove)
That just takes me to a new post :0 my phone is tripping 😂
http://i.imgur.com/OiV978R.jpg
http://i.imgur.com/VZN9qdK.jpg

Two direct links to the other two images
7. (Original post by Lewis7_)
Martins says on page 6 "Budgeted £100,000 annually for running costs"
but then you have calculated 110,000 /52 , where is the 10,000 came from ? I know the 100,000 but not the 10,000 one...
8. (Original post by alevel0620)
but then you have calculated 110,000 /52 , where is the 10,000 came from ? I know the 100,000 but not the 10,000 one...
Martin also says on page 6 "£80,000 startup costs" so we just made an assumption theyd pay it off over 8 years. making it £10,000 a year

Add £100,000 to £10,000 to get the yearly fixed costs
9. Thank you there are so many to know
10. This is what they give you in the exam for TSA:
http://www.ocr.org.uk/Images/144363-...management.pdf

I am praying for it to be TSA, I can remember 2 liquidity and 4 activity ratios but not the profitability solvency or shareholder ratios 😑

Knowing OCR they'll throw a CPA question just to keep us on our toes haha
11. (Original post by lucy112233)
Thank you there are so many to know
I dont know any, so im hoping that TSA comes up really, as thats simple maths!! :P But then the follow up question will be horrible "How useful is tsa..."
12. (Original post by Lewis7_)
Martin also says on page 6 "£80,000 startup costs" so we just made an assumption theyd pay it off over 8 years. making it £10,000 a year

Add £100,000 to £10,000 to get the yearly fixed costs
oh yeah... right THANKYOU !!!!
13. (Original post by BlackDove)
This is what they give you in the exam for TSA:
http://www.ocr.org.uk/Images/144363-...management.pdf

I am praying for it to be TSA, I can remember 2 liquidity and 4 activity ratios but not the profitability solvency or shareholder ratios 😑

Knowing OCR they'll throw a CPA question just to keep us on our toes haha
I swear to god, if they give us decision trees or CPA, I've failed the exam.
14. Im really struggling with TSA, even after reading the posts here?? I think it will come up so can someone just explain by stage?

I know how to calculate the missing boxes, up to dividing by eight.
I can work out the CV such as the difference between sales and the actual trend.
I can work out the average, such as if they ask for Q3 I understand to add up each Q3 and divide, however I am not sure what to do with this information also..
But, I am not sure what else I am supposed to add, how do I do the graph part? (I know its simple but im just confusing myself)
Sorry if this sounds silly.
15. (Original post by Lewis7_)
I swear to god, if they give us decision trees or CPA, I've failed the exam.
CPA would be OK as I've done it in maths, decision trees I haven't done for a while but they're pretty much okay too. ratios are the worst

I'm spending too much time on the calculation question, I need to focus on the essay questions - I've got 1.5 hours to make plans for the possible questions 😣
16. (Original post by katie1123)
Im really struggling with TSA, even after reading the posts here?? I think it will come up so can someone just explain by stage?

I know how to calculate the missing boxes, up to dividing by eight.
I can work out the CV such as the difference between sales and the actual trend.
I can work out the average, such as if they ask for Q3 I understand to add up each Q3 and divide, however I am not sure what to do with this information also..
But, I am not sure what else I am supposed to add, how do I do the graph part? (I know its simple but im just confusing myself)
Sorry if this sounds silly.
The adding up each Q3 variation and dividing will give you the Q3 seasonal variation average. For VGL this is +88.33.

You just draw the graph as you normally would, plot the ACTUAL sales (Raw Sales) and then the trend, do a line of best fit for the trend and then follow it on as a dotted line to extrapolate, use that information to then work out the predictions for the following quarters alongside the season variation.

TSA Just predicits the future, its not accurate and should never be used on its own, it does not take into account any external factors.

(Original post by BlackDove)
CPA would be OK as I've done it in maths, decision trees I haven't done for a while but they're pretty much okay too. ratios are the worst

I'm spending too much time on the calculation question, I need to focus on the essay questions - I've got 1.5 hours to make plans for the possible questions 😣
The thing is, there isnt anything in the case study for CPA, and not even a mention of decision trees or multiple decisions, so cant see how it'll work..
17. (Original post by Lewis7_)
The adding up each Q3 variation and dividing will give you the Q3 seasonal variation average. For VGL this is +88.33.

You just draw the graph as you normally would, plot the ACTUAL sales (Raw Sales) and then the trend, do a line of best fit for the trend and then follow it on as a dotted line to extrapolate, use that information to then work out the predictions for the following quarters alongside the season variation.

TSA Just predicits the future, its not accurate and should never be used on its own, it does not take into account any external factors.

The thing is, there isnt anything in the case study for CPA, and not even a mention of decision trees or multiple decisions, so cant see how it'll work..
Nah it was just being sarcastic 😂
18. Good luck everyone! Im not gonna be on responding anymore, just going to crack on with memorising the ratios...got an hour!
19. How many paragraphs are people aiming To do for essays? Excl. intro and conclusion?

Also what is the difference between the 18 and 23 mark question, doesn't seem to be any difference in writing space or points on mark scheme.
20. Quickly before the test, can anyone offer any ideas as to how vgl could measure quality consistently

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