Question

22. Abu Maju budget inventory levels in u i budgets on an annual basis for al basis for its fiscal year. The following beginning and ending els (in units) are planned for next year, beginning Inventory Ending Inventory 40,000 50,000 80,000 50,000 tal are needed to produce each unit of finished product. Raw material* Finished goods * Three kilograms of raw mate, If Abu Maju plans to sell 48 aju plans to sell 480,000 units during next year, the number on ufacture during the year would be: to manufacture du A. 440,000 units B. 450,000 units C. 480,000 units D. 510,000 units 23. An automated turning mach K, L and M; use th automated turning machine is the current constraint at Jackel Corporation. Three products: and M; use this constrained resource and data concerning those products are as follows: к L M RM100 RM420 RM600 RM60 1 RM280 RM450 Minutes on the constraint 15 Selling price per unit Variable cost per unit 30 Which product should be emphasized LAST? A. K B. L C. M D. None of the above. 24. is a pricing strategy in which a product or service is set at a very low price, intending to drive competitors out of the market. A. Price skimming B. Penetration pricing C. Predatory pricing D. Cost-plus pricing 25. Tech Expert manufactures two products: Regular and Super. The results of operations for 2018 follow. Regular Super Total 3,700 10,000 13,700 Production units RM240,000 RM740,000 RM980,000 Sales 180,000 481,000 661,000 Less: Cost of goods sold 259,000 319,000 Gross margin 60,000 134,000 194,000 Less: Selling expenses RM125,000 RM125,000 Operating income 60,000

Answer 1

22) B). 4,50,000 Units

Units Manufactured = (Closing Stock+Sales-Opening Stock)

450000 = 50000+480000-80000

23) C). M (profit on Machine hours is lowest in M, hence it has last priority)

Particulars	K	L	M
Selling Price Per Unit	100	420	600
Variable Cost per Unit	60	280	450
Profit	40	140	150
Machine Hours	5	15	30
Profit on machine Hours	8	9.33	5

24) C). Predatory price

(predatory pricing help to dominate the competitor and it will act as a barrier to enter the competitors enter into the market)