End Nov2011 Wa
Answer all questions
Question 1
An industrial product may be manufactured by two methods of production.
Using Method X, fixed costs are RM6,540,000 per period and variable costs are RM57 per unit.
Using Method Y, fixed costs are RM7,800,000 per period and variable costs are RM45 per unit.
a) Calculate the level of output per period for which the total costs are the same. (3 marks)
b) Calculate the total cost per period for Method X at this output. (2 marks)
c) State which method should be chosen for sales and production of 100,000 units per period.
(1 mark)
(d) Explain how your answer to (a) supports your answer to (c).
(1 mark)
Method X is chosen for production, and a selling price is set for break-even of 75,000 units per period.
e) Calculate:
i) the selling price (3 marks)
ii) the profit for production and sales of 100,000 units per period. (2 marks)
(Total 12 marks)
Question 2
a) An investment account of RM175,000 attracts 3.65% compound interest per annum, compounded six-monthly.
i) How much will be in the account after 5 years? (3 marks)
(ii) How much of this is interest? (1 mark)
A bank successfully tenders RM97,400 for a RM100,000 Treasury bill that has 6 months to run and is to be redeemed at par.
b) Calculate the rate of simple interest per annum paid on the Treasury bill. (5 marks)
(Total 9 marks)
Question 3
Company A sells Product P with the following prices:
Year 2003 2004 2005 2006
Price(RM) 40.96 46.08 57.60 50.40
a) Calculate the prices of Product P for years 2004 to 2006 as a chain base index. (4 marks)
b) Giving your answers correct to four significant figures, calculate the index of prices for Product P for the years 2003 to 2006 with year 2003 as the base year. (5 marks)
The price relative for Product P for year 2003 with 2002 as the base year is 1.28.
c) Calculate the selling price of
Question 1
An industrial product may be manufactured by two methods of production.
Using Method X, fixed costs are RM6,540,000 per period and variable costs are RM57 per unit.
Using Method Y, fixed costs are RM7,800,000 per period and variable costs are RM45 per unit.
a) Calculate the level of output per period for which the total costs are the same. (3 marks)
b) Calculate the total cost per period for Method X at this output. (2 marks)
c) State which method should be chosen for sales and production of 100,000 units per period.
(1 mark)
(d) Explain how your answer to (a) supports your answer to (c).
(1 mark)
Method X is chosen for production, and a selling price is set for break-even of 75,000 units per period.
e) Calculate:
i) the selling price (3 marks)
ii) the profit for production and sales of 100,000 units per period. (2 marks)
(Total 12 marks)
Question 2
a) An investment account of RM175,000 attracts 3.65% compound interest per annum, compounded six-monthly.
i) How much will be in the account after 5 years? (3 marks)
(ii) How much of this is interest? (1 mark)
A bank successfully tenders RM97,400 for a RM100,000 Treasury bill that has 6 months to run and is to be redeemed at par.
b) Calculate the rate of simple interest per annum paid on the Treasury bill. (5 marks)
(Total 9 marks)
Question 3
Company A sells Product P with the following prices:
Year 2003 2004 2005 2006
Price(RM) 40.96 46.08 57.60 50.40
a) Calculate the prices of Product P for years 2004 to 2006 as a chain base index. (4 marks)
b) Giving your answers correct to four significant figures, calculate the index of prices for Product P for the years 2003 to 2006 with year 2003 as the base year. (5 marks)
The price relative for Product P for year 2003 with 2002 as the base year is 1.28.
c) Calculate the selling price of