Essay: Strategic Influence of Vision and Mission on Decision Making

Q1. Examine with suitable examples, how “Vision and Mission statement” influence the organization’s decision making process? Also provide vision and mission statement of any two Saudi companies. (1.5 Marks)

Q2. The following data has been taken from the records of ABC Company for the year 2015: (1 Marks)

Using the high-low method of analysis, find out variable cost, fixed cost and determine a cost function.

Q3. MNM Corporation provides you the following accounting information related with a particular product:  (1.5 Marks)

Particulars           Amount (SAR)

Selling price per unit       500

Variable cost per unit     200

Total fixed cost 240,000

1. Determine the break-even point in units?
2. Determine the break-even point in sales value SAR?
3. What will be the pretax profit if company sells 1,200 units of the product?
4. How many units the company will be required to sell to reach a target pretax profit of SAR 150,000?

Q4. X Ltd. makes metal products and sells a metal product for SAR 150 per units. The company’s variable cost is SAR 35 per units and total fixed cost are SAR 51,750. The company’s estimated next year budgeted sales are 1,500 units. You are required to calculate: (1 Marks)

1. Degree of operating leverage
2. Margin of safety in units
3. Margin of safety in SAR value