Expatriate

COLLEGE OF BUSINESS MANAGEMENT AND ACCOUNTING

SULTAN HAJI AHMAD SHAH CAMPUS

MIDTERM EXAMINATION

SEMESTER 3 2011/2012

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PROGRAMME : B.IB (Hons)

SUBJECT : PRODUCTION & OPERATION MANAGEMENT

CODE : IBMB323

DATE : 15 MARCH 2012 (THURSDAY)

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TIME : 8.00 PM – 10.00 PM (2 HOURS)

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INSTRUCTIONS TO CANDIDATES

1. This paper contains TWO (2) questions.

2. Answer ALL questions.

3. Write all answers in the answer booklet provided.

4. Write answer to each question on a new page.

5. All calculations must be shown.

THIS EXAMINATION BOOKLET CONTAINS 4 PAGES INCLUDING

THE COVER PAGE

Page 1 of 4

QUESTION 1 [20 MARKS]

a. Megatech Computer is considering producing the new UC20 printer. Its components cost RM630 and it will take ½ hour to assemble and ¼ hour to pack. Skilled workers assemble the printer and make RM16 per hour. Unskilled labors pack the printers and make RM4 per hour. Packaging material cost RM11 per printer.

The printer will be produced in a plant located at Dataran Prima and leased for RM3,100 per month. Utilities, supplies, insurance, etc. are expected to run another RM1,900 per month regardless of the quantity of printers produced. Based on current market conditions, Megatech assumes it can sell as RM700 each all units it produces.

i. Identify the total cost for Megatech Computer; Let x = the monthly production quantity of UC20 printers.

[3 Marks]

ii. What is the breakeven point?

[2 Marks]

iii. What will be the monthly profit of Megatech with a production schedule for UC20 printers are 500 per month?...