Credit Operations and Management (COM) |Question 5 & 9 Math |98th BPE AIBB |Banking Diploma

Credit Operations and Management (COM) |Question 5 & 9 Math Solution| 98th Banking Professional Exam- AIBB | Banking Diploma
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Video Description: This video provides solution to Mathematical Solution to Credit Operations and Management (COM) |Question 5 & 9 Exam Questions of 98th Banking Professional Exam.
Question 5 (c)
ABC company's projected information is as follows:
Sales 200000 and 20
Variable Cost 120000 and 12
Fixed Cost 64000
You are requested to:
(i) Compute the Break-Even point in units.
(ii) How many units must be sold to earn a profit of Taka 30,000?
(iii) Compute the Contribution Margin and Contribution Margin Ratio.
(iv) Compute the additional profit that ABC, would earn if the sales were Taka 25,000
Answer:
i) Break-Even Point 8000 Units
ii) Required Units 11750 Units
iii) Contribution Margin 80000 Taka and Contribution Margin Ratio 0.40
iv) ABC would earn additional Taka 10000 profit if the sales were Taka 25000 More
Question 9 (c)
A Proforma Cost Sheet of XYZ Company provides the following data:
Raw Materials 52.00
Direct labor 19.50
Overheads 39.00
Total cost (per unit) 110.50
Profit 19.50
Selling Price 130.00
The following is the additional information:
Average Raw Material in stock: One Month
Average Material in process: Half a Month
Credit allowed by suppliers: One Month
Credit allowed to debtors: Two Months
Time lag in payment of wages: One and a half weeks
Time lag in payment of overheads: One Month
One-fourth of sales are on cash basis.
Cash balance is expected to be Taka 1,20,000.
You are required to prepare a statement showing the Working Capital needed to finance a level of activity of 70,000 units of output. You may assume that production is carried on evenly throughout the year and wages and overheads accrue similarly.
Answer: Working Capital needed to finance a level of activity of 70000 units of output is Taka 9,81,875.00
COM Book: learningportal....
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