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Management Science Midterm Exam Guide

This document provides instructions and problems for a midterm exam in management science. It includes two multipart problems assessing understanding of break-even analysis and sensitivity analysis. Students are asked to show their work on graph paper, using different colored pens to distinguish initial calculations from subsequent analyses. They are provided data on fixed costs, variable costs, selling price, and initial volume for a business and asked to calculate total cost, total revenue, profit, and break-even volume. For the second problem, students must conduct sensitivity analyses by changing the variable cost and selling price and graphing the new break-even points.

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Jovito Reyes
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0% found this document useful (0 votes)
733 views6 pages

Management Science Midterm Exam Guide

This document provides instructions and problems for a midterm exam in management science. It includes two multipart problems assessing understanding of break-even analysis and sensitivity analysis. Students are asked to show their work on graph paper, using different colored pens to distinguish initial calculations from subsequent analyses. They are provided data on fixed costs, variable costs, selling price, and initial volume for a business and asked to calculate total cost, total revenue, profit, and break-even volume. For the second problem, students must conduct sensitivity analyses by changing the variable cost and selling price and graphing the new break-even points.

Uploaded by

Jovito Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Republic of the Philippines

EDUARDO L. JOSON MEMORIAL COLLEGE


Palayan City, Nueva Ecija 3132

Name:__________________________________
Year & Section:__________________________

MIDTERM EXAMINATION (Part 1)


MANAGEMENT SCIENCE

DIRECTION: Your answer in value form will be written in this sheet.


You will stream your examination in the Google Classroom individually.
Use Graphing paper in your graph.
Show your solution.

1. Fixed cost 12,000.00


Variable cost per unit 11.00
Selling Price 34.00
Initial volume 3,000 units

Look for:
Total cost – 45,000
Total revenue- 102,000
Profit value – 57,000

Break-even volume – 521.74


Total cost (for new BEV)- 17, 739
Total revenue- 17, 739
Profit value- 0
NOTE: use 1 (one graph in this section with a black pen in the initial computation and a red to
the break even computation). Put an indication for fixed cost, breakeven point, total cost, total
revenue, new total cost, new total revenue. In your graph use the interval of 50,000 to all costs
and 700 units in volume.

2. Using your breakeven computation in problem number 1, this will be a sensitivity


analysis.
a. Variable cost of 13.50
(Initial graph in this section will be your breakeven graph in number 1, use black pen
to do it. Red pen in the sensitivity analysis. Show all the amount needed in breakeven
analysis (TC,TR,Z,BEV))

b. Selling price of 39.00


(Initial graph in this section will be your breakeven graph in number 1, use black pen
to do it. Red pen in the sensitivity analysis. Show all the amount needed in breakeven
analysis (TC,TR,Z,BEV))

NOTE: there will be three graph to be visible in your examination.

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