# Management Accounting

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MA360 EXAM SOLUTIONS – 2011 SECTION A Question 1 (a) |Selling Price per|Year 1 Sales Units |Year 1 Year End Stock units |Year 2 Unit Sales |Sales Revenue Year 1 | |Unit (£) | | | |(£) | |20,000 |800,000 |400,000 |500,000 |(100,000) | |40,000 |1,600,000 |800,000 |500,000 |300,000 | |60,000 |2,400,000…show more content…
The profits of the Sussex Glass Company would also be maximised.   Question 3 (a) HSC Total sales revenue (25m x £1.80**) 45.0 [1.0] 32% Gross Margin (£45m x 0.32) 14.4 [1.0] Total required costs 30.6 ** HSC selling price per sandwich = (100 / 133.333) x £2.40 = £1.80 [2.0] Labour cost calculations: Y10 = 60,000 x 10 -0.3219 = 60,000 x 0.4765 = 28,590 hours [1.0] Total time taken for 10 batches = 28,590 x 10 = 285,900 hours [1.0] Y9= 60,000 x 9 -0.3219 = 60,000 x 0.4930 = 29,580 hours [1.0] Total time taken for 9 batches = 9 x 29,580 = 266,220 hours [1.0] Time taken for 10th batch = 285,900 – 266,200 = 19,680 hours [1.0] Total time taken: First 10 batches 285,900 hours Next 15 batches (19,680 x 15) 295,200 hours [0.5] Total 581,100 hours [0.5] Known costs: £ Packaging and labelling: 25m x £0.15 3 750 000 [1.0] Distribution (8% of £45m) 3 600 000 [1.0] Labour (581,100 x £8) 4 654 400 [1.0] Fixed overheads 746 600 [0.5] Ingredients (balancing figure) 17 849 000 [1.0] Total costs as per the above 30 600 000 [0.5] Ingredients cost per sandwich: £17 849 000 / 25m = £0.714