5 3 pts Nosyd plc is considering whether to develop either product X or product Y (they cannot develop both) and they have produced the decision tree below to help with the decision. (A copy of the image below is available in the attached file MA Decision tree Jan 22 exam.pdf) Product X -400k Product Y -600k Successful 60% Unsuccessful 40% Licence product -2,000k Product XX -200k Successful 40% 6,000k Unsuccessful 60% -500k -300k Successful 2,000k 70% Unsuccessful 30% -700k What is the expected value at point A? 650k 680k 620k Product X A -400k -600k Product Y B Successful 60% Unsuccessful 40% C Licence product Product XX -200k 2,000k Successful 40% Unsuccessful 60% 6,000k -500k -300k Successful 2,000k EUnsuccessful 70% 30% -700k What is the expected value at point A? 650k 680k 620k 590k 1,600k Question 6 3 pts GBPO produce porcelain mugs that are sold to large retailers. The sales budget for the next three months of the year is shown below. Sales budget (in units) February 32,000 March 48,000 April 36,000 Budgeted information relating to the production process is shown below: The nature of the production process means that for every 100 units produced 10 will fail inspection due to breakage or cracking and will not be able to be sold. This inspection takes place after all production costs have been incurred. It is company policy to have sufficient inventory of finished goods at the end of each month to meet 25% of the following month's sales. Opening inventory of finished goods at the start of February is expected to be 8,000 units. Each unit produced is budgeted to require 0.25 hours of direct labour at a rate of 20 per hour Variable production overhead is incurred at a rate of 18 per direct labour hour. What is the variable production overhead budget for February? 178,200 The nature of the production process means that for every 100 units produced 10 will fail inspection due to breakage or cracking and will not be able to be sold. This inspection takes place after all production costs have been incurred. It is company policy to have sufficient inventory of finished goods at the end of each month to meet 25% of the following month's sales. Opening inventory of finished goods at the start of February is expected to be 8,000 units. Each unit produced is budgeted to require 0.25 hours of direct labour at a rate of 20 per hour Variable production overhead is incurred at a rate of 18 per direct labour hour. What is the variable production overhead budget for February? 178,200 180,000 162,000 198,000 136,800