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  • 1.  Part 2 Section C - Pricing

    Posted 06-19-2021 05:32 AM
    I have a Life cycle of Product costing question 

    tY-Connections a China based firm has just developed ultra-thin tablets S-5 with few features like the ability to open two apps at the same time.This tablets cost $500000 to develop; it has undergone extensive research and is ready for production. Currently  the firm is deciding on plant capacity, which could cost either $35,00,000 or $52,00,000. The additional outlay would allow the plant to increase capacity from 500 units to 750 units. The relevent data for the life cycle of the tablet at different capacity level are as under:  


    Expected Sales                       500 units                                750 units
    Sale Price per unit               ₹ 79,600.                                  69,600
    Variable Selling 
                    cost                     10% of Selling Price         10% of Selling Price
                                   
    Salvage Value -Plant         ₹ 6,25,000                                ₹ 9,00,000
    Profit Volume Ratio                40%.                                              - 


    Required:
    Advise Y-Connections regarding the optimal plant capacity to install. The tablet life cyle is 2 years. Ignore the time value of money.


  • 2.  RE: Part 2 Section C - Pricing

    Posted 06-20-2021 09:04 AM
    I just wanted to ask that anyone who has given exam recently of part 1 can tell what is the level of exam and they are the same way which Willey and gliem provide questions or not.
    Thanks

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    HARNEET KAMBOJ
    Accountant
    JALANDHAR
    India
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  • 3.  RE: Part 2 Section C - Pricing

    Posted 06-21-2021 07:25 AM
    Hi,

    If you have well practised both of them, you are in good position.

    Actually, I experienced it slightly tougher than Wiley, but not too sophisticated questions like Gleim, either.. The latter mixes too many queries in the same question and while it's doable, time becomes a constraint. But good part is that it makes you think deeper plus they have a blend of lesser tough questions, too. 

    All the best

    --
    Thanks & Regards
    Naser Parkar
    +97433929964





  • 4.  RE: Part 2 Section C - Pricing

    Posted 06-23-2021 02:46 AM
    This is pretty much the same from my point of view, but some questions may sound a little weird to you ... If you practice the Wiley or Glim (average 1750 questions) questions at least a couple of times it won't bother you

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    ARUN PARAMBATH
    Analyst
    Doha
    Qatar
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