Financial performance round 2!

aaron0121

Hi Everyone,

I've got my FNP resit on wednesday and I'm not feeling confident at all. Looking over cbt 3
task 2.2 could any one please help me get the contribution per unit of limited factor for flip
& flop, I know how to get contribution per unit just can't seem to figure out this. And also task 2.2 d
the optimal production mix?

Thanks

Aaron

missm4ry4m

Hi,

I also have my exam this Wednesday!

So you got the contribution for Flip which is £12 and Flop which is £15

The material requirements for Flip is 2kg and for Flop it is 3kg so if you divide this:
12/2 = 6 contribution per unit of limiting factor for Flip
15/3 = 5 contribution per unit of limiting factor for Flop

The optimal production mix is 10,000 units for each.

As there is only 50,000 kg available to use, as Flip has has the most contribution per limiting factor this is made first.

In the earlier part of the question you calculated that the material requirements for Flip is 20,000kg and for Flop it is 60,000kg... You first make all of Flip


So for Flip: 10,000 units, 20,000kg material which a contribution of £150,000 (£15x10,000)
for Flop: 10,000 units, 30,000 kg material as the maximum we could use is 50,000kg with a contribution of 360,000 (12x30,000).

The 10,000 units for Flop is calculated like this: because there is a maximum of 50,000kg material Flop can only use 30,000kg so 30,000/3kg(material requirement) will give the units for Flop.

So overall its 10,000 units for each Flip and Flop.

I hope this has helped even though its so much to take in.

Good luck with your exam!

aaron0121

Thanks for the reply, I'm understanding a lot better now.

Yeah ditto there's so much information to take in and by far the hardest exam of level 4.

Good luck to you also!

missm4ry4m

I totally agree!

Let me know how you got on.

Sammmy88

I have my round 2 on Thursday and not feeling confident! :-(

missm4ry4m

Hi Sammy

What are you not feeling confident about? Which areas in particular?

jane

Hi Guys

Got my second attempt 2moro too, and I am not feeling confident at all. In fact I want to cry and that is no joke:crying:

I have just done CBA 3, and this was very similar to what I had last year!!

Please could anyone help with this question as my mind has gone totally 100% blank at this late hour!!!! GULP

Task 1.5

I just dont know how they calculate
1. the expected cost per kilo forr Nov 2 to be £10.30
2. The % increase in th price of TZ from Jan x2 to Aug x2 to be 3.96%

Pullingmyhairout.com :ohmy:

Thanks

aaron0121

Hi Jane,

To calculate the expected cost per kilo we have to work backwards so 107.25/100*9.60= 10.296 2.dp 10.30

The percentage increase is calculated by doing the difference/original*100.

So difference is 9.98-9.6= 0.38
Original is 9.60
0.38/9.60*100= 3.9583 rounded to 2dp is 3.96

Hope this helps

Aaron

Nps

Hi,

Cost per kilo in Nov 02 is 9.60 x 107.25% = 10.296 rounded up to 10.30.

Percentage increase from Jan to Aug is increase/original price x 100, therefore ((9.98-9.60)/9.60) x 100 = 3.96

Nps

Ah, beaten to it by Aaron, that'll teach me not to refresh my page before answering!

jane

:laugh:

Thanks both

Of course it is :ohmy:

Much appreciated, how daft do I feel now cos I knew it really, just couldn't recall it from all the info in my brain!!!!
Panick has started to set in now, but am trying to keep calm!

Good luck for 2moro

Think I am in for a very long night at this rate!!!

J x

Sammmy88

I am struggling to work out variances when they have these cost card thingys *sob*

missm4ry4m

Fingers crossed they won't have the cost card things.. I prefer the other layout too.

Whirlwind

Hey guys!!

All the very best with FNPF - dont forget to breathe!!

Please let us know how you get on!!

aaron0121

I'm fine with section1, section 2 I'm absolutely dreading really hope I don't get target costing.

Good luck to everyone

jane

Hi Aaron

Yes i completely agree with you. I am finding target costing a bit of a nightmare. I have just done CBA 4 and this is the one I had last year for sure. I got stuck with the same bits as I did originally re target costing!! So know where I went wrong now.
Oh boy am I dredding 2moro. I am so shattered. I have put alot of hours into this again, and I think I will just be so depressed if I get a naff paper again.

I actually thought Financial Statements was the worse one, but now feel that they are definately on par with each other. Luckily I passed FS first time. Hopefully I can scrape through this one.
I feel my written technique has improved , but as for the target costing/Limiting factors etc arghhhh :001_tt2:.
Lets just hope we all get a good paper downloaded for us, prayinglikemad.com

aaron0121

Evening Jane,

tbh I thought financial statements wasn't that bad, I also passed first time but I feel FNP is harder.
Yeah really hoping I don't get target costing, life cycle costing now that I would love to get in
section 2 :laugh:


You're nearly there don't give up now!

missm4ry4m

Target costing isnt too bad - you just take the percentage off the selling price. But lifecycle costing would be so much easier!!

Good luck to everyone doing the exam tomorrow and let me know how you get on.

Sammmy88

at least we will all be waiting together!

aaron0121

EXAM in under 4 hours if someone could help please very much appreciated!

FNP practise cbt 4 task 2.3 d!!

Sammmy88

How did you get the target fixed production?

I have tried task 2.3 and no luck sorry :-(

Nps

At a quick glance, so forgive any mistakes.......

Your target cost is 35 per unit. You know that 26 of this is variable meaning that you only have 9 per unit to spend on fixed costs to maintain your 30% profit margin. Your break even number of units to cover the 200,000 of fixed costs is 200000/9 = 22222 units (rounded down)

This gives you a margin of safety of 7778 units (30000-22222) which is 25.9% of your 30,000 expected sales (7778/30000 x 100). Rounded up to 26%.

I will keep checking back in case I haven't explained any of that very well and you need me to clarify any of it.

Nps

Sammmy,

You get the target fixed production as follows......

Per unit - £50 selling price. To get a 30% profit margin, 50/10 x 7 = 35 target cost. £26 of this is from the variable costs (material at £20 per unit plus £6 (20mins at £18 per hr per unit)). This leaves you with £9 per unit available to cover fixed costs per unit

Total fixed costs - £270000 (£9 x 30000 units)

Sammmy88

yes i get it now, thank you :-)

Morpheus1980

Thanks so much Nps1976, I was stuck on this one too. Hurrah!

omega man

I took this in October and aced it,i got target and life cycle costing 2.1 and 2.2
I exceeded in 7/10 and met in other 3.
Hope you do ok Aaron

aaron0121

Cheers Nps absolute life saver !!!!

Thanks Omega lets see what happens

Morpheus1980

Good luck Aaron, let us know how it went

Sammmy88

Good luck Aaron!

jane

:thumbdown: Horrid horrid horrid. I think that was worse than the first one I did! Written bits were awful. Think I did better on target costing etc but the writtens were arghhhhhhhhhhhhhhhhhhhhh.
The written bits are my downfall by far.
Think another re sit is heading my way, absolutely gutted to say the least :crying:

missm4ry4m

I absolutely agree Jane. The written bits were so hard!!! very unhappy today!!:glare: