Backward planning Limited is considering whether to invest in a project which would entail immediate expenditure on capital equipment of Rs. 80 000. Expected from sales from the projects are as follows. (10 Marks) Probability Sales volume 0.10 2000 0.25 6000 0.40 0.15 18000 10000 14000 0.10 Al Tareeqah Management Studies - 2020 Once sales are established at a certain volume in the first year, they will continue at the same volume in subsequent years. The unit selling price will be Rs. 12, the unit variable cost Rs. 6 and the additional fixed cost will be Rs. 20000 (all cash items) the project would have a life of 6 years after which the equipment would be sold as scrap which would fetch Rs. 8000. You are required to find - (1) expected value of NPV of the project (2) minimum volume of sales per annum required to justify the project. Cost of capital of the company is 10%. Discount factor of Re. I per annum for 6 years at 10% is 4.355 and the discount factor of Re. I at the end of 6 year at 10% is 0.5645

Which job role belongs in the middle management level? a. president b. chief executive officer c. department manager d. chief operating officer e. vice president

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $

Adding a complementary product to what is currently being produced is a demand management strategy used when: a. capacity exceeds demand for a product that has stable demand.b. price increases have failed to bring about demand management.c. demand exceeds capacity.d. demand exceeds 100 percent.e. the existing product has seasonal or cyclical demand.