BCG MATRIX:
The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.
You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?
Division Revenue Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10
2 $70,000 $11,000 0.8 +15
3 $30,000 $8,500 0.6 -20
4 $15,000 $1,000 0.05 -10
Total $165,000 $25,500
...........
ANSWER
1.Question mark
2. Star
3. Cash cow
4. Dog
Because ,
1-Question mark =(high growth,lowmarket share)
2-Star =(high growth ,high market share)
3-Cash cow =(lower growth, high market share)
4-Dog =(lower growth,lower market share)
..........
Division Revenues Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10 ? Mark
2 $70,000 $11,000 0.8 +15 Stars
3 $30,000 $8,500 0.6 -20 Cash Cows
4 $15,000 $1,000 0.05 -10 Dogs
Total $165,000 $25,500
............
High growth rate high market share
Stars 2
High growth rate low market share
Question marks 1
low growth rate high market share
cash cows 3
low growth rate low market share
dogs 4
....................
BCG MATRIX: The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.
You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?
Division Revenues Profits Market share Growth Rate 1 $50,000 $5,000 0.4 +10 2 $70,000 $11,000 0.8 +15 3 $30,000 $8,500 0.6 -20 4 $15,000 $1,000 0.05 -10 Total $165,000 $25,500
...............
Tuesday, July 6, 2010
MGT402 Assignment # 2
Solution Question No. 1
Part-1
Delta Corporation
Income Statement (Under Absorption Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Cost of Goods Sold
Opening Stock 0
Add: Production Cost (15.50 * 24,000) 372,000
Less: Closing Stock (15.50 * 4,000) (62,000) 310,000
Gross Profit 290,000
Less: Operating Expenses
Selling & Administrative Expenses (Fixed) 60,000
Net Profit 230,000
Working:
Production Cost (Total) = 80,000+100,000+120,000+72,000 = 372,000
Per Unit Production Cost = 372,000/24,000 = 15.50
Part-2Delta Corporation
Income Statement (Under Direct Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Variable Cost of Goods Sold
Opening Stock 0
Add: Variable Production Cost (12.50 * 24,000) 300,000
Less: Closing Stock (12.50 * 4,000) (50,000) 250,000
Gross Profit 350,000 Less: Fixed Expenses
Factory Over Heads (Fixed) 72,000
Selling & Administrative (Fixed) 60,000 132,000
Net Profit 218,000
Working:
Total Variable Cost = 80,000+100,000+120,000 = 300,000
Per Unit Cost (Variable) = 300,000/24,000 = 12.50
Solution Question No. 2
Net Profit Calculation (Contribution Margin Approach)
a) Existing Plan
(Rupees)
Sales (100 * 100) 10,000
Less: Variable Cost (70 * 100) (7,000)
Contribution Margin 3,000
Less: Fixed Cost (2,000)
Net Profit 1,000
b) New Plan (Increase Sales by 10 Units)
(Rupees)
Sales (90 * 110) 9,900
Less: Variable Cost (70 * 110) (7,700)
Contribution Margin 2,200
Less: Fixed Cost (2,350)
Net Profit / (Loss) (150)
Working:
10% of 100 Units = 100 * 10% = 10
Per Unit Existing Sales Price = 100
Per Unit Sales Price after 10% Decreased Sales Price = 100 – 10 = 90
Advice by Management Accountant:
In this case, the new plan will not be feasible for the company to adopt as if the company adopts the new plan, it will suffer the loss instead of making any profit.
Part-1
Delta Corporation
Income Statement (Under Absorption Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Cost of Goods Sold
Opening Stock 0
Add: Production Cost (15.50 * 24,000) 372,000
Less: Closing Stock (15.50 * 4,000) (62,000) 310,000
Gross Profit 290,000
Less: Operating Expenses
Selling & Administrative Expenses (Fixed) 60,000
Net Profit 230,000
Working:
Production Cost (Total) = 80,000+100,000+120,000+72,000 = 372,000
Per Unit Production Cost = 372,000/24,000 = 15.50
Part-2Delta Corporation
Income Statement (Under Direct Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Variable Cost of Goods Sold
Opening Stock 0
Add: Variable Production Cost (12.50 * 24,000) 300,000
Less: Closing Stock (12.50 * 4,000) (50,000) 250,000
Gross Profit 350,000 Less: Fixed Expenses
Factory Over Heads (Fixed) 72,000
Selling & Administrative (Fixed) 60,000 132,000
Net Profit 218,000
Working:
Total Variable Cost = 80,000+100,000+120,000 = 300,000
Per Unit Cost (Variable) = 300,000/24,000 = 12.50
Solution Question No. 2
Net Profit Calculation (Contribution Margin Approach)
a) Existing Plan
(Rupees)
Sales (100 * 100) 10,000
Less: Variable Cost (70 * 100) (7,000)
Contribution Margin 3,000
Less: Fixed Cost (2,000)
Net Profit 1,000
b) New Plan (Increase Sales by 10 Units)
(Rupees)
Sales (90 * 110) 9,900
Less: Variable Cost (70 * 110) (7,700)
Contribution Margin 2,200
Less: Fixed Cost (2,350)
Net Profit / (Loss) (150)
Working:
10% of 100 Units = 100 * 10% = 10
Per Unit Existing Sales Price = 100
Per Unit Sales Price after 10% Decreased Sales Price = 100 – 10 = 90
Advice by Management Accountant:
In this case, the new plan will not be feasible for the company to adopt as if the company adopts the new plan, it will suffer the loss instead of making any profit.
Labels:
MGT
Eco401 Assignment No. 2 solution
“Economics (ECO401)”
This is to inform that Assignment # 02 (covering video lecture no. 1 to lecture no 32)
will be uploaded on VULMS according to the following schedule
Schedule
Opening Date and Time
July 05, 2010 At 12:01 A.M. (Mid-Night)
Closing Date and Time
July 08, 2010 At 11:59 P.M. (Mid-Night)
............
Assignment # 02
Question 01
Draw the graph showing that a perfectly competitive firm is making zero profit or
normal profit in the market.
(Marks: 5)
Question 02
Draw the graph showing that a monopoly firm is making super normal profits in
the market.
(Marks: 5)
(Note: In Q # 01 and 02, just draw graphs by yourself. Do NOT copy from any
source. NO need to write any irrelevant material or interpretation.)
Question 03
Consider a hypothetical economy which produces oranges and chicken.
Quantity and cost of both things are given in the table. Calculate the
following from the given information:
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP
Year 2009 Year 2010
Oranges produced 200 250
Chicken produced 150 170
Cost per orange (Rs.) 10 15
Cost per kg chicken (Rs.) 110 155
(Marks: 2+2+1)
(Note: Just calculate to the point in each part. NO need to write irrelevant
material or extra interpretation.)
Question 01
Draw the graph showing that a perfectly competitive firm is making zero profit or
normal profit in the market.
(Marks: 5)
Question 02
Draw the graph showing that a monopoly firm is making super normal profits in
the market.
(Marks: 5)
(Note: In Q # 01 and 02, just draw graphs by yourself. Do NOT copy from any
source. NO need to write any irrelevant material or interpretation.)
Question 03
Consider a hypothetical economy which produces oranges and chicken.
Quantity and cost of both things are given in the table. Calculate the
following from the given information:
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP
Year 2009 Year 2010
Oranges produced 200 250
Chicken produced 150 170
Cost per orange (Rs.) 10 15
Cost per kg chicken (Rs.) 110 155
(Marks: 2+2+1)
(Note: Just calculate to the point in each part. NO need to write irrelevant
material or extra interpretation.)
................
Q-1 solution
Q-2 solution
Question #3 Solution....
Solution#3
• Nominal GDP in 2009 = (200 x 10) + (150 x 110) = 18500
• Nominal GDP in 2010 = (250 x 15) + (170 x 155) = 30100
• Growth rate in nominal GDP = 30100 – 18500/18500 = 62.70%
Solution#3
• Nominal GDP in 2009 = (200 x 10) + (150 x 110) = 18500
• Nominal GDP in 2010 = (250 x 15) + (170 x 155) = 30100
• Growth rate in nominal GDP = 30100 – 18500/18500 = 62.70%
..........
Assignment No.2
Q. 1
Draw the graph showing that a perfectly competitive firm is making zero profit or
normal profit in the market.
MC
Price AC
P
Demand P=MR=AR
0 Q Quantity
Q. No 2
Draw the graph showing that a monopoly firm is making super normal profits in
the market.
P
MC
Pm AC
AC
MR D=AR
Qm
Q. No. 3
Calculate Nominal GDP 2009 and 10=?
Nominal GDP 2009 = (Unit produced * Cost)(200 x 10)+ (150x110)
= 2000+16500
= 185000
Nominal GDP 2010 = (250 x 15) + (170 x 155)
= 3750+26350
= 30100
Growth rate in nominal GDP =
=30100 – 18500/18500
= 62.70%
Q. 1
Draw the graph showing that a perfectly competitive firm is making zero profit or
normal profit in the market.
MC
Price AC
P
Demand P=MR=AR
0 Q Quantity
Q. No 2
Draw the graph showing that a monopoly firm is making super normal profits in
the market.
P
MC
Pm AC
AC
MR D=AR
Qm
Q. No. 3
Calculate Nominal GDP 2009 and 10=?
Nominal GDP 2009 = (Unit produced * Cost)(200 x 10)+ (150x110)
= 2000+16500
= 185000
Nominal GDP 2010 = (250 x 15) + (170 x 155)
= 3750+26350
= 30100
Growth rate in nominal GDP =
=30100 – 18500/18500
= 62.70%
.............
Question 03
Consider a hypothetical economy which produces oranges and chicken. Quantity and cost of both things are given in the table. Calculate the following from the given information:
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP
Year 2009 Year 2010
Oranges produced 200 250
Chicken produced 150 170
Cost per orange (Rs.) 10 15
Cost per kg chicken (Rs.) 110 155
(Marks: 2+2+1)
Solution:-
• Nominal GDP in 2009 = (200 x 10) + (150 x 110) = 18500
• Nominal GDP in 2010 = (250 x 15) + (170 x 155) = 30100
• Growth rate in nominal GDP = 30100 – 18500/18500 = 62.70%
Consider a hypothetical economy which produces oranges and chicken. Quantity and cost of both things are given in the table. Calculate the following from the given information:
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP
Year 2009 Year 2010
Oranges produced 200 250
Chicken produced 150 170
Cost per orange (Rs.) 10 15
Cost per kg chicken (Rs.) 110 155
(Marks: 2+2+1)
Solution:-
• Nominal GDP in 2009 = (200 x 10) + (150 x 110) = 18500
• Nominal GDP in 2010 = (250 x 15) + (170 x 155) = 30100
• Growth rate in nominal GDP = 30100 – 18500/18500 = 62.70%
Labels:
ECO
ECO403 GDB Solution
“Consider IS curve and LM curve in an open economy as explained in a Mundell Flemming model. By having expansionary fiscal policy, there is an increase in government purchase and the IS curve shifts towards right. There is no change in LM curve and it remains vertical. Due to the shift of IS curve, the interest rate and income level remains same but the exchange rate varies”.
Required:
Keeping in view of open economy in the above scenario, if the government want to use expansionary fiscal policy to increase the income level then it cannot do that, why?
Solution:
If the govt. want to use expansionary fiscal policy to increase the income level then it cannot do that, because there is no change in the interest rate it is given and the LM is vertical LM curve, if use expansionary fiscal policy only the exchange rate become high and the income level remains fixed
Labels:
ECO
CS201 Current Quiz
Question
n # 1 of 10 ( Start time: 12:39:43 PM ) Total Marks: 1
_______ operators are the ones that require two operands on both sides of the operator.
Select correct option:
Double
Tow sided
Binary
None of the given options
Question # 2 of 10 ( Start time: 12:40:52 PM ) Total Marks: 1
Memory allocated from heap or free store _____________________.
Select correct option:
can be returned back to the system automatically
can be allocated to classes only
cannot be returned back unless freed explicitly using malloc and realloc
cannot be returned back unless freed explicitly using free and delete operators
Question # 3 of 10 ( Start time: 12:42:21 PM ) Total Marks: 1
This reference to a variable can be obtained by preceding the identifier of a variable with ________________.
Select correct option:
dot operator
ampersand sign &
^ sign
* operator
Question # 4 of 10 ( Start time: 12:43:56 PM ) Total Marks: 1
If the request of new operator is not fulfilled due to insufficient memory in the heap ____________________.
Select correct option:
the new operator returns 2
the new operator returns 1
malloc functions returns NULL pointer
malloc function returns free space
Question # 5 of 10 ( Start time: 12:45:17 PM ) Total Marks: 1
A reference cannot be NULL it has to point a data type.
Select correct option:
true
false
Question # 6 of 10 ( Start time: 12:46:28 PM ) Total Marks: 1
Operator overloading is to allow the same operator to be bound to more than one implementation, depending on the types of the _________.
Select correct option:
Compilers
Operands
Function names
Applications
Question # 7 of 10 ( Start time: 12:47:35 PM ) Total Marks: 1
When an operator function is defined as member function for a binary Plus (+) operator then the number of argument it take is/are.
Select correct option:
Zero
One
Two
N arguments
Question # 8 of 10 ( Start time: 12:49:00 PM ) Total Marks: 1
The memory allocation in C++ is carried out with the help of _______________.
Select correct option:
NULL pointer
new operator
dot operator
+ operator
Question # 9 of 10 ( Start time: 12:50:31 PM ) Total Marks: 1
When operator function is implemented as member function then return type of function ________.
Select correct option:
Must be an object of same class
Must be user-defined data type
Must be built-in data type
Can be any data type
Question # 10 of 10 ( Start time: 12:52:16 PM ) Total Marks: 1
Friend classes are used in cases where one class is ____________to another class
Select correct option:
tightly coupled
loosely coupled
independent
encapsulated
n # 1 of 10 ( Start time: 12:39:43 PM ) Total Marks: 1
_______ operators are the ones that require two operands on both sides of the operator.
Select correct option:
Double
Tow sided
Binary
None of the given options
Question # 2 of 10 ( Start time: 12:40:52 PM ) Total Marks: 1
Memory allocated from heap or free store _____________________.
Select correct option:
can be returned back to the system automatically
can be allocated to classes only
cannot be returned back unless freed explicitly using malloc and realloc
cannot be returned back unless freed explicitly using free and delete operators
Question # 3 of 10 ( Start time: 12:42:21 PM ) Total Marks: 1
This reference to a variable can be obtained by preceding the identifier of a variable with ________________.
Select correct option:
dot operator
ampersand sign &
^ sign
* operator
Question # 4 of 10 ( Start time: 12:43:56 PM ) Total Marks: 1
If the request of new operator is not fulfilled due to insufficient memory in the heap ____________________.
Select correct option:
the new operator returns 2
the new operator returns 1
malloc functions returns NULL pointer
malloc function returns free space
Question # 5 of 10 ( Start time: 12:45:17 PM ) Total Marks: 1
A reference cannot be NULL it has to point a data type.
Select correct option:
true
false
Question # 6 of 10 ( Start time: 12:46:28 PM ) Total Marks: 1
Operator overloading is to allow the same operator to be bound to more than one implementation, depending on the types of the _________.
Select correct option:
Compilers
Operands
Function names
Applications
Question # 7 of 10 ( Start time: 12:47:35 PM ) Total Marks: 1
When an operator function is defined as member function for a binary Plus (+) operator then the number of argument it take is/are.
Select correct option:
Zero
One
Two
N arguments
Question # 8 of 10 ( Start time: 12:49:00 PM ) Total Marks: 1
The memory allocation in C++ is carried out with the help of _______________.
Select correct option:
NULL pointer
new operator
dot operator
+ operator
Question # 9 of 10 ( Start time: 12:50:31 PM ) Total Marks: 1
When operator function is implemented as member function then return type of function ________.
Select correct option:
Must be an object of same class
Must be user-defined data type
Must be built-in data type
Can be any data type
Question # 10 of 10 ( Start time: 12:52:16 PM ) Total Marks: 1
Friend classes are used in cases where one class is ____________to another class
Select correct option:
tightly coupled
loosely coupled
independent
encapsulated
Labels:
CS and IT
CS403 Current Quiz
Question # 1 of 10 ( Start time: 10:58:28 AM ) Total Marks: 1
The _________ function helps reduce the need to use mutiple OR conditions.
Select correct option:
Like
IN
AND
BETWEEN
Question # 2 of 10 ( Start time: 10:59:54 AM ) Total Marks: 1
Columns used to uniquely identify individual rows of a given table, may be specified to be not NOT NULL.
Select correct option:
True
False
Question # 3 of 10 ( Start time: 11:01:06 AM ) Total Marks: 1
In SQL, which command is used to delete rows from table.
Select correct option:
DELETE
REMOVE
TRUNCATE
Both I and II
Question # 4 of 10 ( Start time: 11:02:48 AM ) Total Marks: 1
Which of the fllowing clauses allows to sort the records in result set?
Select correct option:
where
order by
from
having
Question # 5 of 10 ( Start time: 11:03:50 AM ) Total Marks: 1
Which of the following statements creates a database named IMDB.
Select correct option:
Question # 6 of 10 ( Start time: 11:05:29 AM ) Total Marks: 1
Which of the following SQL statements used to control access to the data and to the database?
Select correct option:
GRANT
REVOKE
Both GRANT and REVOKE
SELECT
Question # 7 of 10 ( Start time: 11:06:30 AM ) Total Marks: 1
Which of the following is used with INSERT command to insert values in a DB table?
Select correct option:
ONTO
INTO
UPTO
WITH
Question # 8 of 10 ( Start time: 11:08:05 AM ) Total Marks: 1
Which of the following is used to retrieve and insert information from database?
Select correct option:
DML
DDL
DCL
Both DML and DDL
Question # 9 of 10 ( Start time: 11:09:27 AM ) Total Marks: 1
In SQL queries, while creating tables or relations in database, key columns may be specified by
Select correct option:
Null
Not Null
Data Type
None of the above
Question # 10 of 10 ( Start time: 11:10:53 AM ) Total Marks: 1
Which of the following is not an aggregate function
Select correct option:
AVG
SUM
UPPER
MAX
Select correct option:
Like
IN
AND
BETWEEN
Question # 2 of 10 ( Start time: 10:59:54 AM ) Total Marks: 1
Columns used to uniquely identify individual rows of a given table, may be specified to be not NOT NULL.
Select correct option:
True
False
Question # 3 of 10 ( Start time: 11:01:06 AM ) Total Marks: 1
In SQL, which command is used to delete rows from table.
Select correct option:
DELETE
REMOVE
TRUNCATE
Both I and II
Question # 4 of 10 ( Start time: 11:02:48 AM ) Total Marks: 1
Which of the fllowing clauses allows to sort the records in result set?
Select correct option:
where
order by
from
having
Question # 5 of 10 ( Start time: 11:03:50 AM ) Total Marks: 1
Which of the following statements creates a database named IMDB.
Select correct option:
Question # 6 of 10 ( Start time: 11:05:29 AM ) Total Marks: 1
Which of the following SQL statements used to control access to the data and to the database?
Select correct option:
GRANT
REVOKE
Both GRANT and REVOKE
SELECT
Question # 7 of 10 ( Start time: 11:06:30 AM ) Total Marks: 1
Which of the following is used with INSERT command to insert values in a DB table?
Select correct option:
ONTO
INTO
UPTO
WITH
Question # 8 of 10 ( Start time: 11:08:05 AM ) Total Marks: 1
Which of the following is used to retrieve and insert information from database?
Select correct option:
DML
DDL
DCL
Both DML and DDL
Question # 9 of 10 ( Start time: 11:09:27 AM ) Total Marks: 1
In SQL queries, while creating tables or relations in database, key columns may be specified by
Select correct option:
Null
Not Null
Data Type
None of the above
Question # 10 of 10 ( Start time: 11:10:53 AM ) Total Marks: 1
Which of the following is not an aggregate function
Select correct option:
AVG
SUM
UPPER
MAX
Labels:
CS and IT
ACC501 Gdb solution
Question:
Approches NPV Payback period
Project A -1,280 2.88
Project B 2,560 3.2
Project C 2,560 2.88
Project D -2,240 2.89
Solution:
Project : C
Reason: Because it has the lowest payback period
Approches NPV Payback period
Project A -1,280 2.88
Project B 2,560 3.2
Project C 2,560 2.88
Project D -2,240 2.89
Solution:
Project : C
Reason: Because it has the lowest payback period
Labels:
ACC
GDB # 2 MGT603 - Strategic Management
BCG MATRIX:
The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.
You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?
Division Revenue Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10
2 $70,000 $11,000 0.8 +15
3 $30,000 $8,500 0.6 -20
4 $15,000 $1,000 0.05 -10
Total $165,000 $25,500
...........
ANSWER
1.Question mark
2. Star
3. Cash cow
4. Dog
Because ,
1-Question mark =(high growth,lowmarket share)
2-Star =(high growth ,high market share)
3-Cash cow =(lower growth, high market share)
4-Dog =(lower growth,lower market share)
..........
Division Revenues Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10 ? Mark
2 $70,000 $11,000 0.8 +15 Stars
3 $30,000 $8,500 0.6 -20 Cash Cows
4 $15,000 $1,000 0.05 -10 Dogs
Total $165,000 $25,500
............
High growth rate high market share
Stars 2
High growth rate low market share
Question marks 1
low growth rate high market share
cash cows 3
low growth rate low market share
dogs 4
....................
BCG MATRIX: The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.
You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?
Division Revenues Profits Market share Growth Rate 1 $50,000 $5,000 0.4 +10 2 $70,000 $11,000 0.8 +15 3 $30,000 $8,500 0.6 -20 4 $15,000 $1,000 0.05 -10 Total $165,000 $25,500
...............
The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.
You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?
Division Revenue Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10
2 $70,000 $11,000 0.8 +15
3 $30,000 $8,500 0.6 -20
4 $15,000 $1,000 0.05 -10
Total $165,000 $25,500
...........
ANSWER
1.Question mark
2. Star
3. Cash cow
4. Dog
Because ,
1-Question mark =(high growth,lowmarket share)
2-Star =(high growth ,high market share)
3-Cash cow =(lower growth, high market share)
4-Dog =(lower growth,lower market share)
..........
Division Revenues Profits Market share Growth Rate
1 $50,000 $5,000 0.4 +10 ? Mark
2 $70,000 $11,000 0.8 +15 Stars
3 $30,000 $8,500 0.6 -20 Cash Cows
4 $15,000 $1,000 0.05 -10 Dogs
Total $165,000 $25,500
............
High growth rate high market share
Stars 2
High growth rate low market share
Question marks 1
low growth rate high market share
cash cows 3
low growth rate low market share
dogs 4
....................
BCG MATRIX: The below table illustrates that an organization is composed of four divisions with annual sales ranging from $15,000 to $70,000. Division 2 has the greatest sales volume while on the other hand division 4 has the lowest sales volume.
You have been also given market share and growth rate of each division. By developing the BCG Matrix on your rough paper, you have to only identify which division falls in which quadrant (stars, question marks, cash cows and dogs)?
Division Revenues Profits Market share Growth Rate 1 $50,000 $5,000 0.4 +10 2 $70,000 $11,000 0.8 +15 3 $30,000 $8,500 0.6 -20 4 $15,000 $1,000 0.05 -10 Total $165,000 $25,500
...............
Labels:
MGT
MGT402 Assignment # 2
Solution Question No. 1
Part-1
Delta Corporation
Income Statement (Under Absorption Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Cost of Goods Sold
Opening Stock 0
Add: Production Cost (15.50 * 24,000) 372,000
Less: Closing Stock (15.50 * 4,000) (62,000) 310,000
Gross Profit 290,000
Less: Operating Expenses
Selling & Administrative Expenses (Fixed) 60,000
Net Profit 230,000
Working:
Production Cost (Total) = 80,000+100,000+120,000+72,000 = 372,000
Per Unit Production Cost = 372,000/24,000 = 15.50
Part-2Delta Corporation
Income Statement (Under Direct Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Variable Cost of Goods Sold
Opening Stock 0
Add: Variable Production Cost (12.50 * 24,000) 300,000
Less: Closing Stock (12.50 * 4,000) (50,000) 250,000
Gross Profit 350,000 Less: Fixed Expenses
Factory Over Heads (Fixed) 72,000
Selling & Administrative (Fixed) 60,000 132,000
Net Profit 218,000
Working:
Total Variable Cost = 80,000+100,000+120,000 = 300,000
Per Unit Cost (Variable) = 300,000/24,000 = 12.50
Solution Question No. 2
Net Profit Calculation (Contribution Margin Approach)
a) Existing Plan
(Rupees)
Sales (100 * 100) 10,000
Less: Variable Cost (70 * 100) (7,000)
Contribution Margin 3,000
Less: Fixed Cost (2,000)
Net Profit 1,000
b) New Plan (Increase Sales by 10 Units)
(Rupees)
Sales (90 * 110) 9,900
Less: Variable Cost (70 * 110) (7,700)
Contribution Margin 2,200
Less: Fixed Cost (2,350)
Net Profit / (Loss) (150)
Working:
10% of 100 Units = 100 * 10% = 10
Per Unit Existing Sales Price = 100
Per Unit Sales Price after 10% Decreased Sales Price = 100 – 10 = 90
Advice by Management Accountant:
In this case, the new plan will not be feasible for the company to adopt as if the company adopts the new plan, it will suffer the loss instead of making any profit.
Part-1
Delta Corporation
Income Statement (Under Absorption Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Cost of Goods Sold
Opening Stock 0
Add: Production Cost (15.50 * 24,000) 372,000
Less: Closing Stock (15.50 * 4,000) (62,000) 310,000
Gross Profit 290,000
Less: Operating Expenses
Selling & Administrative Expenses (Fixed) 60,000
Net Profit 230,000
Working:
Production Cost (Total) = 80,000+100,000+120,000+72,000 = 372,000
Per Unit Production Cost = 372,000/24,000 = 15.50
Part-2Delta Corporation
Income Statement (Under Direct Costing System)
For the Quarter Ending -------------
(Rupees)
Sales (20,000 * 30) 600,000
Less: Variable Cost of Goods Sold
Opening Stock 0
Add: Variable Production Cost (12.50 * 24,000) 300,000
Less: Closing Stock (12.50 * 4,000) (50,000) 250,000
Gross Profit 350,000 Less: Fixed Expenses
Factory Over Heads (Fixed) 72,000
Selling & Administrative (Fixed) 60,000 132,000
Net Profit 218,000
Working:
Total Variable Cost = 80,000+100,000+120,000 = 300,000
Per Unit Cost (Variable) = 300,000/24,000 = 12.50
Solution Question No. 2
Net Profit Calculation (Contribution Margin Approach)
a) Existing Plan
(Rupees)
Sales (100 * 100) 10,000
Less: Variable Cost (70 * 100) (7,000)
Contribution Margin 3,000
Less: Fixed Cost (2,000)
Net Profit 1,000
b) New Plan (Increase Sales by 10 Units)
(Rupees)
Sales (90 * 110) 9,900
Less: Variable Cost (70 * 110) (7,700)
Contribution Margin 2,200
Less: Fixed Cost (2,350)
Net Profit / (Loss) (150)
Working:
10% of 100 Units = 100 * 10% = 10
Per Unit Existing Sales Price = 100
Per Unit Sales Price after 10% Decreased Sales Price = 100 – 10 = 90
Advice by Management Accountant:
In this case, the new plan will not be feasible for the company to adopt as if the company adopts the new plan, it will suffer the loss instead of making any profit.
Labels:
MGT
Eco401 Assignment No. 2 solution
“Economics (ECO401)”
This is to inform that Assignment # 02 (covering video lecture no. 1 to lecture no 32)
will be uploaded on VULMS according to the following schedule
Schedule
Opening Date and Time
July 05, 2010 At 12:01 A.M. (Mid-Night)
Closing Date and Time
July 08, 2010 At 11:59 P.M. (Mid-Night)
............
Assignment # 02
Question 01
Draw the graph showing that a perfectly competitive firm is making zero profit or
normal profit in the market.
(Marks: 5)
Question 02
Draw the graph showing that a monopoly firm is making super normal profits in
the market.
(Marks: 5)
(Note: In Q # 01 and 02, just draw graphs by yourself. Do NOT copy from any
source. NO need to write any irrelevant material or interpretation.)
Question 03
Consider a hypothetical economy which produces oranges and chicken.
Quantity and cost of both things are given in the table. Calculate the
following from the given information:
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP
Year 2009 Year 2010
Oranges produced 200 250
Chicken produced 150 170
Cost per orange (Rs.) 10 15
Cost per kg chicken (Rs.) 110 155
(Marks: 2+2+1)
(Note: Just calculate to the point in each part. NO need to write irrelevant
material or extra interpretation.)
................
Q-1 solution
Q-2 solution
Question #3 Solution....
Solution#3
• Nominal GDP in 2009 = (200 x 10) + (150 x 110) = 18500
• Nominal GDP in 2010 = (250 x 15) + (170 x 155) = 30100
• Growth rate in nominal GDP = 30100 – 18500/18500 = 62.70%
..........
Assignment No.2
Q. 1
Draw the graph showing that a perfectly competitive firm is making zero profit or
normal profit in the market.
MC
Price AC
P
Demand P=MR=AR
0 Q Quantity
Q. No 2
Draw the graph showing that a monopoly firm is making super normal profits in
the market.
P
MC
Pm AC
AC
MR D=AR
Qm
Q. No. 3
Calculate Nominal GDP 2009 and 10=?
Nominal GDP 2009 = (Unit produced * Cost)(200 x 10)+ (150x110)
= 2000+16500
= 185000
Nominal GDP 2010 = (250 x 15) + (170 x 155)
= 3750+26350
= 30100
Growth rate in nominal GDP =
=30100 – 18500/18500
= 62.70%
.............
Question 03
Consider a hypothetical economy which produces oranges and chicken. Quantity and cost of both things are given in the table. Calculate the following from the given information:
a) Nominal GDP in year 2009
b) Nominal GDP in year 2010
c) Growth rate of nominal GDP
Year 2009 Year 2010
Oranges produced 200 250
Chicken produced 150 170
Cost per orange (Rs.) 10 15
Cost per kg chicken (Rs.) 110 155
(Marks: 2+2+1)
Solution:-
• Nominal GDP in 2009 = (200 x 10) + (150 x 110) = 18500
• Nominal GDP in 2010 = (250 x 15) + (170 x 155) = 30100
• Growth rate in nominal GDP = 30100 – 18500/18500 = 62.70%
ECO403 GDB Solution
Tuesday, July 06, 2010 Posted In Eco Edit This 0 Comments »
“Consider IS curve and LM curve in an open economy as explained in a Mundell Flemming model. By having expansionary fiscal policy, there is an increase in government purchase and the IS curve shifts towards right. There is no change in LM curve and it remains vertical. Due to the shift of IS curve, the interest rate and income level remains same but the exchange rate varies”.
Required:
Keeping in view of open economy in the above scenario, if the government want to use expansionary fiscal policy to increase the income level then it cannot do that, why?
Solution:
If the govt. want to use expansionary fiscal policy to increase the income level then it cannot do that, because there is no change in the interest rate it is given and the LM is vertical LM curve, if use expansionary fiscal policy only the exchange rate become high and the income level remains fixed
Labels:
ECO
ECO403 GDB Solution
“Consider IS curve and LM curve in an open economy as explained in a Mundell Flemming model. By having expansionary fiscal policy, there is an increase in government purchase and the IS curve shifts towards right. There is no change in LM curve and it remains vertical. Due to the shift of IS curve, the interest rate and income level remains same but the exchange rate varies”.
Required:
Keeping in view of open economy in the above scenario, if the government want to use expansionary fiscal policy to increase the income level then it cannot do that, why?
Solution:
If the govt. want to use expansionary fiscal policy to increase the income level then it cannot do that, because there is no change in the interest rate it is given and the LM is vertical LM curve, if use expansionary fiscal policy only the exchange rate become high and the income level remains fixed
Required:
Keeping in view of open economy in the above scenario, if the government want to use expansionary fiscal policy to increase the income level then it cannot do that, why?
Solution:
If the govt. want to use expansionary fiscal policy to increase the income level then it cannot do that, because there is no change in the interest rate it is given and the LM is vertical LM curve, if use expansionary fiscal policy only the exchange rate become high and the income level remains fixed
Labels:
ECO
CS403 Current Quiz
Question # 1 of 10 ( Start time: 10:58:28 AM ) Total Marks: 1
The _________ function helps reduce the need to use mutiple OR conditions.
Select correct option:
Like
IN
AND
BETWEEN
Question # 2 of 10 ( Start time: 10:59:54 AM ) Total Marks: 1
Columns used to uniquely identify individual rows of a given table, may be specified to be not NOT NULL.
Select correct option:
True
False
Question # 3 of 10 ( Start time: 11:01:06 AM ) Total Marks: 1
In SQL, which command is used to delete rows from table.
Select correct option:
DELETE
REMOVE
TRUNCATE
Both I and II
Question # 4 of 10 ( Start time: 11:02:48 AM ) Total Marks: 1
Which of the fllowing clauses allows to sort the records in result set?
Select correct option:
where
order by
from
having
Question # 5 of 10 ( Start time: 11:03:50 AM ) Total Marks: 1
Which of the following statements creates a database named IMDB.
Select correct option:
Question # 6 of 10 ( Start time: 11:05:29 AM ) Total Marks: 1
Which of the following SQL statements used to control access to the data and to the database?
Select correct option:
GRANT
REVOKE
Both GRANT and REVOKE
SELECT
Question # 7 of 10 ( Start time: 11:06:30 AM ) Total Marks: 1
Which of the following is used with INSERT command to insert values in a DB table?
Select correct option:
ONTO
INTO
UPTO
WITH
Question # 8 of 10 ( Start time: 11:08:05 AM ) Total Marks: 1
Which of the following is used to retrieve and insert information from database?
Select correct option:
DML
DDL
DCL
Both DML and DDL
Question # 9 of 10 ( Start time: 11:09:27 AM ) Total Marks: 1
In SQL queries, while creating tables or relations in database, key columns may be specified by
Select correct option:
Null
Not Null
Data Type
None of the above
Question # 10 of 10 ( Start time: 11:10:53 AM ) Total Marks: 1
Which of the following is not an aggregate function
Select correct option:
AVG
SUM
UPPER
MAX
The _________ function helps reduce the need to use mutiple OR conditions.
Select correct option:
Like
IN
AND
BETWEEN
Question # 2 of 10 ( Start time: 10:59:54 AM ) Total Marks: 1
Columns used to uniquely identify individual rows of a given table, may be specified to be not NOT NULL.
Select correct option:
True
False
Question # 3 of 10 ( Start time: 11:01:06 AM ) Total Marks: 1
In SQL, which command is used to delete rows from table.
Select correct option:
DELETE
REMOVE
TRUNCATE
Both I and II
Question # 4 of 10 ( Start time: 11:02:48 AM ) Total Marks: 1
Which of the fllowing clauses allows to sort the records in result set?
Select correct option:
where
order by
from
having
Question # 5 of 10 ( Start time: 11:03:50 AM ) Total Marks: 1
Which of the following statements creates a database named IMDB.
Select correct option:
Question # 6 of 10 ( Start time: 11:05:29 AM ) Total Marks: 1
Which of the following SQL statements used to control access to the data and to the database?
Select correct option:
GRANT
REVOKE
Both GRANT and REVOKE
SELECT
Question # 7 of 10 ( Start time: 11:06:30 AM ) Total Marks: 1
Which of the following is used with INSERT command to insert values in a DB table?
Select correct option:
ONTO
INTO
UPTO
WITH
Question # 8 of 10 ( Start time: 11:08:05 AM ) Total Marks: 1
Which of the following is used to retrieve and insert information from database?
Select correct option:
DML
DDL
DCL
Both DML and DDL
Question # 9 of 10 ( Start time: 11:09:27 AM ) Total Marks: 1
In SQL queries, while creating tables or relations in database, key columns may be specified by
Select correct option:
Null
Not Null
Data Type
None of the above
Question # 10 of 10 ( Start time: 11:10:53 AM ) Total Marks: 1
Which of the following is not an aggregate function
Select correct option:
AVG
SUM
UPPER
MAX
Labels:
CS and IT
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