# GM04 Managerial Economics Assignment No.

II Assignment Code: 2012GM04A2 2012 Last Date of Submission: 15th May Maximum Marks:100 Ques. 4 Fill in the blanks in the following table :

No. of units of variable input 3 4 5 6 7

Total output (No. of units) 125 -

Marginal Product of variable input

Average product of variable output

Unknown 20 5 -

30 19

30. we need to set aside Rs. His accountant has bought the following: i) ii) iii) We are following FIFO system for the purpose of issues.and raise cost of goods sold Ramesh Manufacturing Ltd .65.each.1.so as to be able to buy new machinery. In spite of price rise for the product.for the first time.000/.000/. Costs are going up faster than 12% and they will go up further in 2009. In 2008 due to continuous price rise of the inputs.3. This will reduce closing inventory to Rs. decline in cash flow.II Assignment Code: 2012FM11A2 2012 Last Date of Submission: 15th May Maximum Marks:100 Section-B Case Study Ramesh developed original specification of a product and founded Ramesh Manufacturing Ltd. In 2007 the firm manufactured 980 nos at an average price of Rs.FM11 Financial and Management Accounting Assignment No.000/. Ramesh was surprised to learn in late 2008 (as may be seen from the financial statements) that Ramesh Manufacturing Ltd show a decline in earnings and still worse. since he knew he could sell plant’s full capacity of 980 nos per year.not Rs.1. he raised his prices at an average of 12%. We are not setting aside enough to replace the machinery.900/. which sold for over Rs. iv) It is still not late to switch to LIFO for 2008.50.1000/.

Income statement (Rs.008 2007 900 Required: a) What is the weighted average inflation factor for the firm using LIFO? b) If the firm desires a 15 percent profit margin on sales.000) 2008 Sales Cost of goods sold Opening inventory Raw material Labour Depreciation End inventory 500 200 150 (-) 390 780 Gross margin Administrative expenses EBIT Interest 128 50 78 Income tax Profit after tax Add: expenses Inventory charge Cash flow (-) 70 119 (-) 70 132 non cash 39 39 150 154 50 104 52 52 150 228 100 654 246 92 400 174 150 (-) 320 320 250 1. how much should the firm charge for the product per unit? .

Many sales people in the company were painfully aware of the lack of personal commitment to their job and customers.GM11 Management Functions and Organizational Behavior Assignment No. Mr. All his employees were paid a straight wage without commissions and all members of the staff were union led.Ram Bansal took over the handbag department at RK & Company New Delhi. .” Mr. This arrangement offered few motivational options and had a negative effect on employee attitudes. One employee commented. customers were often shown a dressing room “cop” who asked how many garments were included and gave them the appropriately colored tag. 3 Discuss some of the common symptoms of interpersonal problems between Individuals. Section-B Case Study NO COMMISSIONS ALLOWED When Mr. The original sales clerk rarely appeared for additional customer service. “There’s a lot of talk about increasing customers. He also wanted to improve customer service and employee satisfaction. One was to increase sales without increasing the number of salespeople or the way they were paid. In other departments of the company.Bansal knew he had to make some changes in order to improve the sales production in the department.Bansal was not in a position to use commissions to reward improved performance.II Ques. Unlike some retail supervisors. he established several important goals for the department.

the sales staff had felt they were not supposed to talk to buyers.Bansal satisfy for his full-time employees? 2. He also encourages employees to discuss problems and ask questions. Bansal achieved significant productivity gains because of a positive change in employee’s attitudes. What motivational need did Mr. encouraged to offer the buying staff suggestions. 3.His first step was to give full-time employees their own counter area and their own line of merchandise. Discuss these needs with reference to Maslow’s hierarchy of needs. Every week.Bansal brings the staff together for a meeting. Questions 1. He also increased the responsibility of the sales staff for managing their own Any sales person who needed information was inventory and their own line of merchandise.Bansal with an opportunity to publicly recognize the accomplishments of employees. was encouraged to talk with buyer of handbags. he emphasizes the importance of customer service and reviews any change in departmental policies and procedures. These meetings provide Mr. Mr. Mr. What motivational strategies did he use to achieve this success? . Previously. At these meetings.

It seemed the company had got itself into a real big mess. They decided to take the same route to people’s heart in this locality as they had done where their mother locality was . sunk in a couple of hundred crores into the area. All cries to the state government fell on deaf ears. The company officials prided themselves on having done a lot of social and community welfare work over the last several decades. The land was acquired by the company after much resistance from the villagers and tribal who were unwilling to give up their land . . The opposition grew so strong that it became impossible for the company to carry on its work in a smooth way.officials and villagers seemed indifferent to the efforts of the company in bringing better civic amenities and lifestyle to the place. The opposition to the acquisition kept getting stronger .II Assignment Code: 2012GM12A2 2012 Last Date of Submission: 15th May Maximum Marks:100 Section-B Case Study The steel manufacturing company acquired 1000acres of land near a village in another state to start up a new manufacturing project. Much of the help and co-operation promised at the time of signing the agreement seemed to have been forgotten. It was felt that the plant would go a long way in fulfilling the aspirations of the backward state and its population.The company spent several crores in getting proper water systems in place to provide clean drinking water to the villagers surrounding the plant. The state government promised the company all kinds of facilities and full encouragement in setting up the plant. The company had. by now. The state government seemed completely apathetic to the demands and plight of the company.The company had a tough time with the local officials too. It had the best integrated steel plant in the country. The local politicians .GM12 Business Communication Assignment No. It had been in the business of manufacturing steel for over 70 years.

Questions 1. It was decided in a board meeting to shelve the project. 2. without getting to know the ground realities. It also eroded the shareholder’s faith in the company. Had the officials acted with a little more restraint in spending money.The company had failed to envision the rest of the parties with a vision similar to its own. Jot down the reasons that you think led to the failure of the setting up a new plant. The villagers did not see the company as their savior and the state government did not feel the company would change the fortunes of the people in the state. .The officials did not know whom to blame for this state of affairs. This impacted the bottom-line of the company. The apathy of the state government in fulfilling its promises was cited as the major reason for this decision. Prepare a report to submit it to the management. the picture could have been a lot better. There was some kind of an ambiguity and incongruity as far as vision alignment of the respective parties was concerned . The company had several hundred crores of its capital on a project that was stillborn.