Hall Ticket No:
Question Paper Code: A3011
VARDHAMAN COLLEGE OF ENGINEERING
(AUTONOMOUS) B. Tech IV Semester Regular/Supplementary Examinations, May 2018
(Regulations: VCE-R15) MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Common to Electronics and Communication Engineering Mechanical Engineering) Date: 25 May, 2018 FN
Time: 3 hours
Max Marks: 75
Answer ONE question from each Unit
All Questions Carry Equal Marks
Unit I
1.
Identify and explain the cross elasticity of demand with suitable examples.
5M
Discuss in detail, the functional nature of market demand.
10M
2.
Demonstrate in detail the technique of trend line by observation in demand forecasting.
10M
Calculate 3-day moving average from the following daily sales data:
Date and month
Daily sales
(Lakhs of tones) Jan 1
40
2
44
3
48
4
45
5
53
5M
Unit II
3.
What is the difference between Iso-Cost and Iso-Quant Curve? Draw a suitable diagram.
7M
What is law of variable proportion? Explain change in production with change in one variable.
8M
4.
What is the significance of Break Even Analysis? Mark profit making Zone, Loss making Zone, Total Contribution and Margin of Safety in graph representing Break Even Point.
7M
The Quiet Blow Company has a small plant that manufactures noise suppressors for blowers. Its annual fixed costs are Rs.30,000 and its variable costs are Rs.10 per unit. It can sell a suppressor for Rs.25:
i. How many suppressors must the company sell to break even
ii. What is the break-even revenue
8M
Unit III
5.
What are the features of perfect competition?
6M
Write a note on Price-Output determination under Monopoly. Illustrate the same with a graph.
9M
6.
Write Short notes on following topics:
i. Cost plus pricing strategy
ii. Market skimming pricing strategy
iii. Peak load pricing strategy
iv. Block pricing strategy
15M
Unit IV
7.
What is capital budgeting? Explain the features of capital budgeting proposals.
7M
Define working capital? Explain the components and features of working capital.
8M
Cont…2
2
8.
Two projects M and N which are mutually exclusive are being under consideration. Both of them require an investment of Rs. 1,00,000 each. The net cash inflows are estimated as under:
Year
M Rs.
N Rs.
1
10,000
30,000
2
40,000
50,000
3
30,000
80,000
4
60,000
40,000
5
90,000
60,000
The company's targeted rate of return on investment is 12%.You are required to assess the projects on the basis of their present values, using NPV method and Profitability index method. Present values of Re.1 at 12% interest for five years are given below:
1styear 0.893; 2nd year 0.797; 3rd year 0.712; 4th year 0.636; 5th year 0.567.
15M
Unit V
9.
Differentiate between trial balance and balance sheet.
5M
i. What are the advantages of trading account?
ii. What is the difference between trading account and profit and loss account?
10M
10.
The following trial balance was taken from the books of Habib-ur-Rehman on December 31, 1980:
Cash
13,000
Sundry debtors
10,000
Bill receivable
8,500
Opening stock
45,000
Building
50,000
Furniture and fittings
10,000
Investment (Temporary) 5,000
Plant and Machinery
15,500
Bills payable
9,000
Sundry creditors
20,000
Habib's capital
78,200
Habib's drawings
1,000
Sales
100,000
Sales discount
400
Purchases
30,000
Freight in
1,000
Purchase discount
500
Sales salary expenses
5,000
Advertising expenses
4,000
Miscellaneous sales expenses
500
Office salary expenses
8,000
Misc. general expenses
1,000
Interest income
1,000
Interest expenses
800
2,08,700
2,08,700
Closing stock on December 31, 1980 was $10,000
Prepare income statement/trading and profit and loss account and balance sheet from the above trial balance in report form.
15M