BAC — Answer key for the MANAGEMENT test Main session – June 2021

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

1. The final revision should focus on the different formulas and syntheses mentioned by the different chapters.
2. Check that your calculator is working properly.
3. How to approach the subject?
   1. 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.
   2. The subject of Management consists of two parts: "The first part scored on 5 points,

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.

3. 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.

4. Check your calculations carefully and fill in the annexes clearly (avoid erasures, overwriting, etc.).
5. Please use blue pens while avoiding pens with different highlights, gold, etc… to preserve the readability of your writing.
6. Give the corresponding numbers of exercises, folders and their questions.
7. Number the pages of your copy.
8. 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

Exercise n°1: 5 points/40

1. 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

2. 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.

3. Assuming the production of 214 libraries:
   1. 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.

2. 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

3. 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

1. 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

2. 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.

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

Overdraft = 100 – 000 = 25 843,800 D

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

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

5. 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

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

1. Present the differential score table. 1pt

2. Calculate the ratio of profit margin to sales.

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

3. 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.

4. 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)

1. 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

2. 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

3. 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)

1. 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

2. 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.

3. 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)

1. 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

2. 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:
   1. Calculate the result of a pair of washable leather shoes.

Unit result= 40 – 31 = 9 D. 1pt

2. 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.

3. 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.

4. 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)

1. 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.

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

FDR in days = 57 + 3 = 60 days

2. 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.

3. 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.

4. 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)

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

Topic analysis – Main session June 2021

• Main thread of the 2^thpart (Idea(s) and problem(s) presented: (Folder1→ Folder2 → Folder3→ Folder 4).