Working towards a company’s vision
Q1 Provide example of one Saudi Company and analyze the steps that the managers in this company can take to achieve its vision and use core competencies. (2 Mark)
Q2 The following data were obtained from the accounting information system of ABC Corporation:
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Order Paper NowUnitsTotal Cost
MonthProduced
January60SAR1,533.4
February501,300
March802,000
April30833.5
a.Use the data for February and March and the two – point method to determine a cost function.
b.Use the high – low method to determine a cost function.
(2 Mark)
Q3 XYZ Corporation sells its product for $17 per unit.Its variable cost is $10 per unit, and total fixed costs are $800.Assuming next period’s estimated sales are 300, calculate the following amounts:
a.Degree of operating leverage
b.Margin of safety in units
c.Margin of safety in revenues
Sample Solution
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