Table 1 Market Statistics
  SouthWestNorthExport
Managerial/professional households 1m 1m 1m 10m
Supervisory/clerical households 2m 1m 3m 15m
Other households 4m 2m 9m 55m
Total number of households 7m 4m 13m 80m
Retail trade outlets 30002000 400020,000

Table 2Marketing Costs
Salesperson's quarterly expenses £ 3000
Information on competitors' activities £ 5000
Information on market shares £ 5000

Table 3 Manufacturing Parameters
  Product 1Product 2Product 3
Minimum machining time per unit 60 min. 75 min. 120 min.
Minimum assembly time per unit 100 min. 150 min. 300 min.
Material content per unit 1 unit 2 units 3 units

Table 4Maintenance Costs
Contracted maintenance per machine£ 60 per hour
Uncontracted breakdown repairs
(over contracted hours per machine)		£ 120 per hour

Table 5 Maximum Hours Available per Machine
Per Quarter, Relative to Shift Level Worked
Shift Level Maximum hours per quarter that each machine can work, accumulating hours to each successive level of shift Machinists needed for each machine
1. Single 576 4
2. Double 1068 8
3. Triple 160212

Table 6 Valuation of Rejected Products
  Product 1Product 2Product 3
Scrap value per product unit£ 20 £ 40£ 60

Table 7 Guarantee Servicing Charges
Product 1Product 2Product 3
Servicing charge per product unit£ 60£ 120£ 200

Table 8Production Costs
Cost of supervision per shift £ 10,000
Production overheads, per machine£ 2000
Machine running cost per hour £ 7
Production planning cost per unit£ 1

Table 9 Standard Vehicle Capacity
  Product 1Product 2Product 3
Vehicle capacity in product units
(Note: mixed loads may be carried)		 40 40 20

Table 10 Return Journey Times to -
  SouthWestNorthExport
Delivery journey time (in days) 1 2 4 6

Table 11 Transport Costs
Driver's wages, maintenance, tax etc.£7000 per vehicle
Own vehicle running cost £ 50 per day
All-in hire cost of 1 vehicle £ 200 per day

Table 12Warehousing and Purchasing
Factory material storage capacity 2000 units
Fixed quarterly cost of factory warehouse £ 3750
Fixed quarterly administrative cost £ 3250
Cost per order placed for materials £ 750
Variable cost of external material storage £ 1.50 per unit
Cost of product storage in market areas £ 2 per unit

Table 13 Calculation of Average Quarterly Stocks, and Interest
Materials 0.5 x (opening level + closing level + quantity at each delivery)
Products 0.5 x (opening level + closing level)
Interest 0.5 x (opening funds + closing funds) x interest rate

Table 14 Material Suppliers' Terms of Trade
Supplier Discount allowed Delivery charge Minimum Delivery (units) Minimum Order quantity (units)
   0 0% nil 1 1
   1 10%£ 200 1 1
   2 15%£ 300100010,000
   330%£ 100 n/a50,000
This supplier makes 12 weekly deliveries -
enter '0' on the Decision Form for the number of deliveries

Table 15Personnel Department Costs
  RecruitmentDismissalTraining
Salesperson £ 1500£ 5000£ 6000
Assembly worker £ 1200£ 3000£ 4500
Machinist £ 750 £ 1500 n/a

Table 16 Maximum Hours per Quarter for each Production Worker
plus Shift Pay Premiums
Shift Level Hours per worker
at basic rate		 Hours per worker
at Saturday rate (Basic + 50%)		 Hours per Worker
at Sunday rate
(Basic + 100%)		 Machinists
Shift Premium
1. Single420+ 84+ 72 0
2. Double420+ 42+ 721/3
3. Treble420+ 42+ 722/3

Table 17Minimum Hours and Pay
Machinist's minimum paid hours per quarter 400
Assembly worker's strike hours per week 48
Assembly worker's minimum hours/quarter nil
Assembly worker's minimum hourly wage rate£ 8.50
Ratio of unskilled : skilled rate of pay 65%
Minimum sales salary per quarter £ 2000
Minimum management budget per quarter £ 40,000

Table 18 per Machine per Vehicle
Total cost of fixed asset £ 200,000£ 15,000
   Payable at time of order£ 100,000£ 15,000
   Payable on installation£ 100,000n/a
Rate of depreciation per quarter2.50 %6.25%

Table 19 Methods of calculating Financial Limits
Overdraft Limit
100% of Cash Invested plus the value of Product Stocks
plus 50% of the value of Machines, Vehicles, Material Stocks and Debtors
plus 25% of the value of Property
less 100% of Tax Due and Creditors
Creditworthiness for buying machines
Overdraft Limit less Bank Overdraft and any Unsecured Loans
less £100,000 for each machine ordered last quarter
Note: All of these values are taken from last quarter's Management Report
If any limit calculated above is negative, then the limit is set to 0

Table 20Financial Parameters
Tax Rate per annum 30%
Fixed overheads per quarter £ 10,000
Variable overhead rate per quarter 0.25%
Credit control cost per unit sold £ 1.50
Interest Rates:  (based on the Central Bank Rate announced last quarter)
  Investments (bank cash deposits) bank rate less 2%
  Authorised overdraft bank rate plus 4%
  Unsecured bank loans bank rate plus 10%

Table 21 Stock Valuations
  Product 1Product 2Product 3
Product stock (per unit)£ 80£ 120£ 200
Materials (per unit) 50% of last quarter's material price

TABLE 22 Timing of Payments to Creditors
EXTERNAL COST ITEMS ONLY

(internal costs and pay omitted)
For goods delivered, or services provided next quarter the charged amount will be paid as follows -
Next QuarterQuarter after Next
Advertising   100 %
Guarantee Servicing   100 %
Hired Transport   100 %
Product Development 100 % 
Personnel Department 100 % 
Maintenance   100 %
Warehousing and Purchasing 100 % 
External stockholding costs   100 %
Business Intelligence   100 %
Other Miscellaneous Overheads 100 % 
Materials Purchased   100 %
Machines Purchased* 50 % 50 %
Interest (paid and received) 100 %  
Note: A 50% deposit is paid next quarter when machines are ordered.
The balance is due when machines are installed in the quarter after next.

Table 23 Customers' credit discount structure
Credit period (days)up to 78 - 1516 - 2930 or more
Discount allowed 10 % 7.5 % 5 % nil