Roles and grades within the accounting department team (pre-Mexit announcement)

 
Function  Team leader Reports
Receivables PQ(A) Lara Petrov PQ(D) T1 and T2
Payables FQ(A) Gerry Otuma PQ(E) + T3
Credit Control FQ(B) Rafael Sanchez FQ(D) + T4 and T5
Payroll PQ(B) John Conti T6 and T7
Long-term Asset Management FQ(C) Robert Stone No reports
Treasury and Cash Management PQ(C) Philip Russell T8
 
After the MEXIT announcement there are a number of resignations of staff who are CETA
nationals in the accountancy department, due to uncertainty over MEXIT, who all plan to
leave before the point of MEXIT:
 
Staff: No: Roles:
Fully Qualified (FQ) staff 2 FQ (A) and (D)
Part Qualified (PQ) staff 2 PQ (B) and (E)
Technician staff 4 T1, T2, T6 and T8
 
Further quantitative data on Telford Engineering
 Telford Engineering exports 40% of its output to CETA.

 Telford Engineering imports 50% of its materials from CETA and import costs will be
affected by the lower exchange rate post MEXIT.
 Pre-Exit Exchange rate: M$1.00 = C$1.40
 Post-Exit Exchange rate: M$1.00 = C$1.12
 Post-exit fall in export volume to CETA based countries = 30%
 Post exit general increase in departmental staff costs due to staff replacements
(excluding Accounting Dept.) = 10%
 Increase in salaries of replacement staff in the accountancy department due to MEXIT
announcement = 20%
Assumptions
1. Exit from CETA takes place in one year’s time.
2. The exchange rate between Menai and CETA falls at the point at which MEXIT is
announced but remains constant for the foreseeable future.
3. Exports are invoiced in the domestic country currency (Menai $) so there is no currency
conversion effect on exports.
4. Fall in export volume is a one-off reduction due to MEXIT.
5. Imports from CETA are subject to the increased exchange rate conversion rate post exit.
6. Material volume will be affected proportionally by changes in sales volume, including
exports.
7. Assume all other costs are fixed in respect of sales volume.
8. The general inflation rate is assumed to be zero each year for all revenue and costs
(including wage inflation for all staff remaining in post, except when being replaced).
9. Assume all amortisation costs and overheads remain constant for the next year and for
the foreseeable future.
10. Ignore time value of money and taxation.