Dear students, we present the following recommendations to you to successfully pass the Management subject test:

- The final revision should focus on the different formulas and syntheses mentioned by the different chapters.
- Check that your calculator is working properly.
- How to approach the subject?
- Spend about 10 to 15 minutes for a complete reading of the subject
**.**This first job should allow you:- become familiar with its structure and identify the independent parts;
- consult the appendices;
- highlight important points and data that you might later forget;
- to identify the knowledge that you need to mobilize and the technical difficulties;
- isolate the appendices to be completed and submitted with the copy so as not to forget them.

- The subject of Management consists of two parts: "The first part scored on 5 points,

- Spend about 10 to 15 minutes for a complete reading of the subject

it consists of 2 exercises aimed at examining the ability to master certain management concepts and possibly certain questions for reflection. She can prepare you for the

“second part” which is marked out of 15 points. It usually consists of a few folders (at least 3 folders).

- For the first part “Exercises”, you start with the exercise that you consider easy. If the questions are independent, deal with the questions that you know best first.

Otherwise, you respect the order of the questions asked.

- For the second part “Study of a case”, try to grasp the common thread by reading the general introduction to the case as well as the introductions relating to each file.

Understanding the common thread helps you handle the case appropriately. The general introduction of the case study can state the problem and direct the student towards the problems to be resolved and the solutions to be adopted.

- Treat the files in order while also respecting the order of their questions. In general, the files are not necessarily linked on the calculation level, but linked on the idea and common thread level, so not succeeding in one file does not constitute an obstacle to solving the next file.

- Check your calculations carefully and fill in the annexes clearly (avoid erasures, overwriting, etc.).
- Please use blue pens while avoiding pens with different highlights, gold, etc… to preserve the readability of your writing.
- Give the corresponding numbers of exercises, folders and their questions.
- Number the pages of your copy.
- Justify your results with the necessary calculations.

Bon Courage

**MANAGEMENT – Answer key for the main session 2021 The answer key is as follows: Reminder of the question (in bold), then the answer**

**Reminder of questions and answers**

**1**^{st}** game: 10 points/40**

^{st}

**Exercise n°1: 5 points/40**

**Determine the optimal quantities to be manufactured during the month of April 2021 to ensure full employment of the two workshops. 2pts**

Let: X be the optimal quantity to manufacture sideboards Y the optimal quantity to manufacture bookcases 0,75X + 1Y ≤ 275

10X+15Y≤ 4000

X= 100 Sideboards

Y = 200 Libraries

**According to the commercial services, it would be possible to sell 214 bookcases and 250 sideboards on the market each month at current prices. State, justifying your answer, which product is favored by the "Kortoba" company (to be produced first). 0,5pt**

Library M/CVU is 1250>750 (Buffet M/CVU)

So the company must first produce the libraries.

**Assuming the production of 214 libraries:****Check that the maximum quantity of sideboards to be manufactured during the month of April 2021 would be 79 units. 1pt**

Sawing workshop: 0,75X+ 1×214 = 275 X= 81,333 units

Assembly workshop: 10X + 15×214 = 4000 X = 79 units

So the company must produce 79 buffet units.

**Calculate the overall result for the month of April 2021 relating to the following production program: 1pt****214 libraries;****79 sideboards.**

Overall result = (750×79) + (1×250) – 214 = 200 D

**Knowing that the overall result in a situation of full employment would be 125000 dinars; say, justifying your answer, what is the production program to adopt during the month of April 2021?**

**0,5pt**

126750>125000 therefore the company must adopt the production program 214 bookcases and 79 sideboards.

**Exercise n°2: 5 points/40**

**What are the effects to expect on 01/03/2021? 1pt**

The bills to be discounted on 01/03/2021 are:

- Effect n° 1021: nominal value 40000 D
- Effect n°1022: nominal value 35000 D

**Determine the amount of the agio including VAT and deduct the net of the discounted bills. 1,5 pt**

Discount = (40x000x30/12)+(36000x35x000/36)= 12+36000 = 400 D

Commission HT = 10×2 = 20 D

VAT on commission = 20×0,19 = 3,800 D Agio TTC = 820+20+3,8 = **843,800D.**

Net discount = (75000 – 843,800) = **D74.**

**Check that the amount of the overdraft is 25843,800 dinars. 0,5pt**

Overdraft = 100 – 000 = **25 843,800 D**

**Calculate the cost of the bank overdraft. 1pt**

Overdraft cost = (25 x 843,800×14/30) + 36000 = **351,511 D**

**Determine the total cost of financing the cash shortfall for the month of March 2021. 1pt**

Total financing cost = (820+20)+351,511 = **1191,511 D**

**2**^{th}** game: 30 points/40**

^{th}

**Dossier n°1: Analysis of the current situation**** ****(9,5 points) A/Analysis of operations**** ****(2,5 pts)**

**Present the differential score table. 1pt**

elements | amounts |

Revenue Variable costMargin/variable costFixed priceResult | 1000 000600 000 |

400 000200 000 | |

200 000 |

**Calculate the ratio of profit margin to sales.**

Profit margin rate = 200/000 = **0,2 or 20% 0,5 pts**

**Knowing that the average profit margin rate in the sector is 15% and that the price level practiced by competitors is lower than that adopted by the company by 10%, what conclusions can you draw? 0,5pt**

– 20% > 15%, the company is more profitable than its sector.

– The price level adopted by the company is higher than that of competitors, so the company has an interest in reducing its selling price to maximize its market share.

**Based on the results obtained in the two previous questions, help Mr. Mohamed find an appropriate solution to be able to reduce his selling price and maintain his profit margin in order to increase his market share. 0,5pt**

To be able to reduce its selling price and maintain its profit margin in order to increase its market share, the company must act on its costs (reduce its costs):

- either by making a more sophisticated investment and consequently reducing variable costs;
- or by controlling its costs in order to avoid waste as far as possible.

**B/ Commercial policy (7pts)**

**Complete the table for calculating differential results, break-even points and safety margins appendix n°1 page 8/8 (to be returned with the copy).**

See appendix no.: **5,5pt**

**What commercial policy should be adopted? Justify your answer. 1pt**

The company has an interest in adopting commercial policy n°1: because it ensures the highest profitability and the largest margin of safety and guarantees a better market share.

result:**261500D > 236000D**

Safety margin : **550 526,316D > 524444,444D**

Turnover: **1D > 140D**

**Knowing that the production capacity is exploited at a rate of 70%; propose a solution that will make the company's investments profitable and ensure full employment. 0,5pt**

In order to make its investments profitable and ensure full employment, the company has an interest in diversifying its range by launching one or more new products on the market.

**Dossier n°2: Launch of a new product**** ****(12 points) A/Psychological price**** ****(6 pts)**

**Complete the psychological price calculation table appendix n°2 page 8/8 (to be returned with the copy)**

See appendix n°2: **4,5 pts**

**Knowing that the company intends to sell its product to distributors (wholesalers and independent shops) at 40 dinars excluding 19% VAT, and that the latter apply an average margin rate of 30% excluding 19% VAT, determine the selling price including VAT at final consumer. What do you notice? 1t**

Selling price including VAT to the end consumer: 40 x 1,3 x 1,19 = **61,880 D**

PVTTC = psychological price = **61, 880 D.**

**Knowing that the Tunisian Footwear Company has set a target in terms of cost margin of 20% compared to the selling price excluding 19% VAT, what should be the cost price allowing it to achieve the target? 0,5pt**

Cost of Cost = 40 x 0,8 = **32 D**.

**B/Full cost (6 pts)**

**Present in a table the calculation of the production cost and the estimated cost price of a pair of washable leather shoes. 2,5 pts**

elements | amounts | |

Raw material | 14,000 | |

Direct labor | (10/60) x 6 = 1,000 | |

Supplies | 3,500 | |

Indirect manufacturing costs | ||

Cutting workshop | (2/60)x 30 = 1,000 | |

Quilting workshop | (20/60) x 9 = 3,000 | |

Assembly workshop | (15/60) x 12 = 3,000 | |

Finishing and packaging workshop | (10/60)x 21 = 3,500 | |

Production cost | 29,000 | |

Distribution charges | 2,000 | |

Cost price | 31,000 |

**If the company decides to set its selling price on the basis of the psychological price by applying a selling price to distributors of 40 dinars excluding 19% VAT:****Calculate the result of a pair of washable leather shoes.**

Unit result= 40 – 31 = **9 D. 1pt**

**State, justifying your answer, whether the estimated cost price enables the company to achieve its objective in terms of margin (margin on cost price of 20% compared to the selling price excluding 19% VAT). 1pt**

Estimated cost price: 31<32 therefore 31 allows the company to reach its objective of 20% in terms of margin rate in relation to the selling price. Or 9/40 = 22,5% >20% therefore 31 allows the company to reach its objective of 20% in terms of margin rate compared to the selling price.

**What is the impact of the launch of the new product (washable leather shoes) on the cost structure of the two existing models? 0,5pt**Given that the company will use the same structure to produce the new product since it is in a situation of under-activity, this translates into a**lower fixed costs**supported by the other two models (cost of under-activity) therefore a**improved profitability**on both

existing models.

**Based on the study you have just carried out, say whether the company should launch the production of washable leather shoes and why? 1pt**

Given the above, the company has an interest in launching the production of washable leather shoes because:

- New profitable product;
- Expansion of the range;
- Economy of scale on existing models;
- Increase in market share.

**Dossier n°3: Evolution of financial equilibrium indicators (5 points)**

**Determine the projected working capital requirement expressed in days of turnover excluding VAT. 1pt**

WCR in days: (27+20+2+50+8) – (45+5) = **57 days.**

**Knowing that the minimum cash forecast required by the manager Mr. Mohamed is 3 days of turnover excluding VAT:****Calculate the projected working capital expressed in days of turnover excluding VAT. 1pt**

FDR in days = 57 + 3 = **60 days**

**Calculate the estimated working capital in value for a turnover excluding VAT per day of 8000 dinars per day. 1pt**

Estimated FDR in value = 60 x 8000 = **D480.**

**Knowing that the working capital existing on 31/12/2020 is 400 dinars, show that the lack of stable resources to finance the digital cutting machine (000 dinars) and the realization of the projected working capital is 240 dinars. 000pt**

(480+ 000)–240 = **D320.**

**Help Mr. Mohamed find the right funding sources. 1pt**Since the need is stable, it must be financed by stable resources:

- Loan from MLT;
- Capital increase in cash
- Possibility of financing the digital cutting machine by leasing.

**Annex n°1: Table for calculating differential results, break-even points and safety margins**

**(****5,5 pts)**

elements | Trade Policy No. 1 | Trade Policy No. 2 | ||

Turnover Variable costsMargins on variable costs Fixed costsOperating results | 1 140000 | 100% | 1 080000 | 100% |

598500 | 52,50% | 594000 | 55% | |

541500 | 47,50% | 486000 | 45% | |

280000 | 250000 | |||

261500 | 22,94% | 236000 | 21,85% | |

Profitability thresholds (formulas | 280/000 = | 250/000 = | ||

figures and results) | DO NOT 589D | 555 555,556 D | ||

Safety Margins | 1 140 000 - 589 473,684 | 1 080 000 - 555555,555 | ||

(numbered formulas and results) | = 550526,316 D | = 524 444,444D |

**Annex n°2: Table for calculating the psychological price**** ****(4,5 pts)**

All taxes included price | Answer to question 1 "Too expensive" | Answer to question 2"Poor quality" | People who don't buy | Potential buyers | ||

Name | Growing accumulation | Name | Decreasing accumulation | |||

A | B | C | D | E | F = C+E | G= 600-F |

42,840 | 0 | 0 | 135 | 600 | 600 | 0 |

47,600 | 0 | 0 | 105 | 465 | 465 | 135 |

52,360 | 30 | 30 | 90 | 360 | 390 | 210 |

57,120 | 54 | 84 | 69 | 270 | 354 | 246 |

61,880 | 63 | 147 | 54 | 201 | 348 | 252 |

66,640 | 66 | 213 | 51 | 147 | 360 | 240 |

71,400 | 78 | 291 | 45 | 96 | 387 | 213 |

76,160 | 93 | 384 | 36 | 51 | 435 | 165 |

80,920 | 102 | 486 | 15 | 15 | 501 | 99 |

85,680 | 114 | 600 | 0 | 0 | 600 | 0 |

Topic analysis – Main session June 2021

FIRST PART: (10/40 points) | |||

Problem | Affected chapters | Scientific tools to use | comment |

Exercise 1:Search for the production program that maximizes the overall result of the company. The statement sets out the production standards according to the technical department, as well as the M/CV for each product. The work required consists of: - determining the optimal quantities to be manufactured during the month of April, - calculating the result of a program of given production (under commercial constraint),-comparing the optimal result with the result of the given program. | Chapter: Production ManagementSection: Choice of quantities to manufacture | Inequalization of technical production constraints0,75X + 1Y ≤ 27510X + 15Y≤ 4000Resolution of a system of equations with two unknownsResult = Unit M/CV x Quantity sold – Total fixed cost | The student must be able to: Calculate the optimal quantities Choose the production program that maximizes the overall result of the company. |

Exercice n ° 2Calculation of the cost of financing the cash deficit.The statement outlines the conditions for discounting bills and bank overdraft. The work required consists of: - calculating the cost of the discount, - calculating the cost of overdraft, - calculating the total cost of financing the deficit. | Chapter: Financial ManagementSection: Financing the operating cycle | Cost of the discount: E + Commission HT E = (VN xtxn)/36000 Net discount value = VN – agio including tax Agio including tax = E + Commission HT x (1,19) Overdraft cost: I + Commission HT = ( Mxtxn)/36000 | The student should be able to: Calculate the cost of discounting bills Calculate the net discount value Calculate the cost of overdraft Calculate the total cost of financing the deficit. |

**Main thread of the 2**^{th}**part (Idea(s) and problem(s) presented:****(Folder1**→**Folder2**→**Folder3**→**Folder 4).**

SECOND PART: (30 points) | |||

It is a shoe manufacturing company called “The Tunisian shoe company which faces competition from Chinese products that are cheaper than Tunisian products. The company is trying to adjust its positioning to this new economic situation by reducing the selling price of certain products. It is committed to a cost reduction policy in order to maintain its margin. In this regard, it is requested to analyze the following files.Dossier n°1: Analysis of the current situation of the company(Analysis of operations: find a solution to reduce the selling price of "Feyrouz" shoes and maintain the profit marginCommercial policy: choose the commercial policy that allows the company to have the highest profitability, the most important security and guarantee a better market share).Dossier n°2: Launch of a new product (Psychological price: determine the psychological price of the new product and the cost price which allows the company to achieve a margin rate on cost price compared to the selling price of 20% Full cost: determine the estimated cost price and decide whether or not to launch the new product).Dossier n°3: Evolution of financial equilibrium indicators (Calculate the provisional FDR and compare it to the existing FDR find the sources of financing necessary to reach the provisional FDR and finance the new machine).Dossier n°4: Advertising and promotion (To increase the sales of "Feyrouz" shoes and promote the marketing of the new product, 3 communication media are possible; this involves determining the cost of each medium, determining the total cost of the advertising and promotional campaign, comparing the cost of the campaign with its allocated budget in order to judge its feasibility). | |||

Problems posed | Affected chapters | Scientific tools to use | Comments |

File no. 1:Analysis of the current situationA- Analysis of the operationTHEstatement sets out the cost structure of mid-range "Feyrouz" shoesLThe work required consists of-presenting the table of the differential result,-calculating the profit margin rate,-finding a solution to reduce the selling price and maintain the profit margin rate | Chapter: Production ManagementSection:Cost calculation: partial costs | R = CAHT – CV – CFT Profit margin rate = R/CAHT | The student must be able to: Present the differential result table Give solutions to reduce the selling price and maintain the profit margin. |

B- Commercial policyTHEstatement explains that following the acquisition of an improved machine the company proposes two commercial policies to lower the selling priceLe work required, among other things, of (to): complete a table of differential results, break-even points and safety margins, choose the most advantageous policy for the company. | Chapter: Production ManagementSection:Cost calculation: partial costs | R = HVAC – CV – CFSR = CF/ TMCVMS = HVAC – SR | The student must be able to: Calculate the break-even point in value (SR)Calculate the margin of safety in value (MS) |

File n°2Release of a new productA- Psychological priceTHEstatement sets out the result of a survey conducted by the company among 600 potential consumers.LThe work required consists of: - completing the table for determining the psychological price, - comparing the public sale price calculated from the company's forecast sale price with the psychological price, - calculating the cost price which allows the company to achieve a margin rate on cost price of 20% of the selling price excluding tax. | Chapter: Business ManagementSection: choose a pricing policy | The psychological price The margin rate of a commercial enterprise = (PVHT – Purchase cost) / PVHT Margin rate on cost price compared to the selling price = (PVHT – Cost cost) / PVHT | The student must be able to:Determine the psychological priceCalculate the public sale price from distributor margin ratesCalculate the PVTTC from PVHTCompare the public sale price and the psychological price.Calculate the cost price from a given cost margin rate. |

B- Full costTHEstatement sets out the elements of the cost price of a pair of washable leather shoes.Lhe work required consists of:-calculating the cost of production and the cost price of a pair of shoes in the form of a table,-calculating the result of a pair of shoes,-checking that the estimated cost price allows it is up to the company to achieve its objective in terms of margin rate on cost price, - to decide whether or not to launch the production of the new product. | Chapter: Production ManagementSection: Cost calculation: full costs | Production cost = Purchase cost of raw materials consumed + miscellaneous supplies + MOD + Indirect production costs (workshop costs) Cost price = Production cost + Distribution cost. | The student must be able to: Calculate the production cost Calculate the cost price Decide whether or not to launch the production of the new product. |

File n°3Evolution of financial balance indicatorsThe statement sets out the needs and operating resources expressed in days of turnover excluding tax. The work required consists of: - determining the forecast BFR expressed in days of turnover, - calculating the forecast FDR expressed in days turnover and in value, - compare the existing FDR with the forecast FDR, - find the appropriate sources of financing to reach the forecast FDR and finance the new machine. | Chapter: Financial ManagementSection: Financing the investment cycle (sources of financing investments). Section: Financing the operating cycle (working capital requirement) | BFR in days of turnover= operating needs in days – resources in days.FDR in days of turnover= BFR in days + TN in days.FDR in value = FDR in days x the turnover business excl. tax per day. | The student must be able to: Calculate the BFR in days Calculate the FDR in days Find the appropriate sources of financing to increase the FDR and invest. |

File n°4Advertising and promotionTHEStatement sets out to increase sales of "Feyrouz" shoes and promote the marketing of washable shoes in washable leather: 3 communication media are planned (modalities and cost components).LThe work required consists of:-calculating the cost of each communication medium,-calculating the cost of the advertising and promotional campaign,-deciding whether or not to carry out the campaign by comparing the cost of the campaign and the budget allocated to this campaign. | Chapter: Business ManagementSection: Choosing a communication policy | Calculation of the cost of communication media. A cost = ∑ of the charges | The student must be able to: Calculate the cost of a communication medium Calculate the cost of an advertising and promotional campaign. Compare the cost of the campaign with its allocated budget and decide whether or not to carry it out. |