KONGU ENGINEERING COLLEGE, PERUNDURAI 638 060

CONTINUOUS ASSESSMENT TEST 1 / 2 / 3

(Regulations 2014 / 2018)

PART - A (5 × 2 = 10 Marks)
ANSWER ALL THE QUESTIONS

1. List the three major functional areas of business organizations. [CO4] [K2]

2. Identify the trade-offs you would consider for the decision “buying a new car versus buying [CO4] [K3]
a used car”.
3. Name several ways that technology has had an impact on location decisions. [CO4] [K2]

4. A Manufacturing company purchased an automatic machine for Rs.2,19,500. It has an [CO5] [K3]
estimated salvage value of Rs.19,500 and an estimated working life of 5 years. Compute the
depreciation charge for each of the 5 years.
5. Differentiate production planning and production control. [CO4] [K2]

Part – B (2 × 10 = 20 Marks)
ANSWER TWO QUESTIONS
6. Classify the different functions of production planning and control and explain. (10) [CO4 [K2]
]
7. A large bakery buys flour in 25 kg bags. The bakery uses an average of 4860 bags (10) [CO4 [K3]
a year. Preparing an order and receiving a shipment of flour involves a cost of Rs. ]

100 per order. Annual carrying costs are Rs. 15 per bag.
i) Determine the economic order quantity(EOQ)
ii) What is the time between the orders
iii) How many orders per year will be?
iv) Compute the total cost of ordering and carrying cost of flour
v) If ordering costs were to increase by Rs. 25 per order, how much
would that affect the minimum total annual cost?
8. A company makes a single product with a sales price of Rs.10 and a variable cost of Rs.6 per (10) [CO5 [K3]
unit. Fixed costs are Rs.60,000. Calculate ]
1. Number of units to Break-even
2. Sales at Break-even
3. Contribution to Sales ratio
4. What number of units will need to sold to achieve a profit of Rs.10,000
5. What level of sales will achieve a profit of Rs.30,000
6. Given an increase in variable cost by Rs.2 per unit and increase in the fixed costs by
Rs.10000 per annum. What will be the new BEP in units?