2) Task 2
Q1. Given the following information for Al-Maha Shop Company, answer the following questions:
Selling price (per unit) 500 R. O
Number of units sold 200
Variable cost (per unit) 300 R. O
Fixed cost 600,000 R. O
i. Calculate contribution margin ratio (10 marks)
ii. Find Breakeven Point in amount (10 marks)
iii. Find Breakeven Point in units (10 marks)
Q2. Discuss the importance of calculating Break-even point for any organization (20 marks)
Q3. Explain the difference between fixed cost and variable cost? Support your answer with examples? (20
Q4. Each student is required to engage in the following course and answer the following question:
Write a report of 300 words about the course describing the challenges you faced and the benefits
you got while engaging in the above-mentioned course (20 marks).
Rules & Regulations:
• All resources should be cited using CU Harvard style.
• The final assignment must have a Title page, Table of Contents, References/ bibliography using
CU Harvard Style and page numbers.
• Title Page must have Assignment Name, Module name, Session, your name, ID, and the name of
• Total number of words should be 1200
• Softcopy in word format is to be submitted through Turnitin link on Moodle.
• Viva might be conducted after the assignment submission based on the instructor discretion
• Assignment must be computer typed.
➢ Font – Times New Roman
➢ Font – Style – Regular
➢ Font – Size – 12
Accounting for Business (BUSS20001) – Fall – 20 – CW (Assignment 2) – All – QP
MEC_AMO_TEM_035_01 Page 3 of 10
➢ Heading should be with Font Size 14, Bold, Capital and Underline.
• Explain with suitable diagrams wherever required. Diagrams must be drawn using suitable
software or by pencil.
• Each student has to do the assignment individually
• You can refer books in eLibrary or use internet resource. But you should not cut and paste material
from internet nor provide photocopied material from books. The assignment answers should be
in your own words after understanding the matter from the above resources.
Important Policies to be followed
- Student Academic Integrity Policy*:
MEC upholds the spirit of academic integrity in all forms of academic work and any form of violation
of academic integrity shall invite severe penalty. Any benefit obtained by indulging in the act of
violation of academic integrity shall be cancelled.
All cases of violation of academic integrity on the part of the student shall fall under any of the below
- Ghost Writing
- Other cases
nated travel agent. The travel agents often forms large amount of ticket sales, this gives certain power to the travel agents and airline would generally gives some percentage of commission to them for ticket sales. A zero commission policy by SIA had cause boycott of sales of SIA tickets by travel agents who consist of 80% total sales volume in India, forcing the company to reduce flight and down sized in India [Chowdhury, 17 Apr 2009]. The buyer bargaining power is indeed very high for SIA. 4.5 Bargaining power of suppliers SIA have its own subsidiary Singapore Airport Terminal Service for ground handling service such as baggage handling and in-flight food and beverages supply. SIA’s other subsidiary SIA Engineering had been engage in aircraft maintenance and servicing. SIA are also financially strong hence does not depends heavily on financial institution for business process. This leaves the main suppliers of SIA only air craft manufacturer. Jet fuel, even though form up to 40% of the airline expenditure (as of year 2008), is a commodity that fluctuate with crude oil price. The airline mainly purchases its plane from Boeing and Airbus. Although there were no apparent substitute and high retraining and logistic cost will incur for switching of supplier, the demand is relatively weak for these suppliers in recent years with about 10% of the world’s fleet in storage [Calingo, 1997]. SIA had been continuously renewing its fleet even during peak of crisis which gives sales order that helps aircraft manufacturer pull through financial difficulty [Scott, 2008]. The average age of aircraft is 6year and 2month in 2008; signal a large volume of purchase on its aircraft, with planed spending of SGD 11,800million in the next five year on aircraft. It is Boeing largest customer on 777 series plane [Boeing, 25th Aug 2004] and first customer for Airbus 380. This makes SIA an important customer and enjoys high bargaining power over the manufacturer. 4.6 Relative power of Other Stakeholders>GET ANSWER