CS/B.

TECH(N)/ODD/SEM-3/3446/2024-2025

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MAULANA ABUL KALAM AZAD UNIVERSITY OF TECHNOLOGY, WEST BENGA
Paper Code : HSMC301 Economics fot Engineers (Humanities-II)

Time Allotted : 3 Hours Full Marks :70

I The Figures in the margin indicate full marks.
i Candidate are required to give their answers In their own words as far as practicab
le

Group-A (Very Short Answer Type Question)

[ 1 x 1O= 1O]
1. Answer any ten of the following :
the effective rate of interest will be:
(I) If 'the nominal rate of interest is 10% per annum and there is quarterly compounding
(II) If too much money is chasing too few goods, the resulting inflation is known as
----
Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point?
(IIQ
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(IV) High inflation levels in the economy leads to _ _ _ in the supply of money.
(Vl A fixed cash flow in each year for a specified number of years is called as...... . I ·(,l
..:u I.
(VI) In replacement analysis ,the term defender is -
a) existing equipment
b) new equipment
p) bo,th _oHhe above •'
''
d) none of the above
(VII)
- - - - - better describes variable cost?
the effective rate of interest will be:
(VIII) If the nominal rate of interest is 10% per annum and there is quarterly compounding,
a rupee on hand today is known as:
(IX) The concept that value of a rupee to be received in future is less than the value of
•
(X)
- •
Determin
~ t"'-
e Contribu
'r. ~ .. . .
tion if Sales is Rs 1,50,000 and PN ratio is 40%.
• (XI) a is
Wheh •infl.ation is result of an increase in the price of factors of production, the result• - - - - - ~- •• ·•:r
a.:sta"gflatiori ,·
b. Cnst-push inflation
e. Dem:and-pull inflation
d.
.
None
l • -
of the above
·- •
its fixed costs
(XII) ff. CC/p.)Pi:WY produc;es a single, high-volume product. One year its production volume was 780,000 units,
was the company 's average fixed cost for the year?
were Rs 32 lac and its variable costs were Rs, 16 per unit. What
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Group-8 (Short Answer Type Question)

·, .,
[5X3=1 5]
Answer any three of the following

the year 1982 at a cost of Rs .[ s l

2. An Elecfricity"company wants to replace its machinery which was installed in
in the ratio of 5:3:2:!f:he· n~:: ·1r:· ,.,r
3000000-witti a capacity of 300 MW. This consists of material , labour and overhead
preser;it c.o,st-iodex1of,material, labour and overheads are 250,300 and 240 respectiv
ely. T~e comp~ny ~~r;its, tQ; .. ,. ,1, , ..

the present cost of machinery to be

increase tQ double of its present capacity. You are required to determine
1
and power-sizing model. The power sizing factor is 0.80.
r~p1a·ced\~ iffl doubl~ ~apacity by using cost indexes
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3. State fhe _djff~rent c~~ses of Inflation.
4. Distinguish ~etween variable cost and Fixed cost .
[ sl
5• [sl
for the last two years are as follows:
....,. results of a company
The ope.rating

--~1-: Year Sales Profit I

;
r;· ! • ·2009 270000 6000

2010 300000 15000

find out:
Assuming that the cost structure and selling prices remains the same in both the years,
a) PN ratio b) Fixed cost c) Break-even point d) Margin of safety at a profit of Rs 24000.
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from the cost records of yuvraj and co . [sl
-6. The followi_ng figures for the month of march 2005 were extracted
Raw materials consum ed Rs 4000

/ Direct labour cost Rs 6000

Factory overhead Rs 500
Administration overhead 20% on work cost.
Selling and distribution overhead 6 paisa per unit
Units produce8 Rs 20000
Units sbld° (~ta profit of 20% of selling price} Rs 10000
the month of March 2005.
You are required to prepare a cost sheet showlhg profit for

Group-C (Long Answer Type Question)

[ 15 X 3 = 45 J
Answer any three of the following

• [ 15 I
7. The following data are obtained from the records of a factory
Details Amt (Rs) Amt(Rs)

Sales : 4000 units @Rs 25 each 100000

1
' ( I ' 1H

Materials!, consumed 40000

'
10000
Vartablefbverheads I

20000
~La~~ .ih~fiQ8S '. ~· .
' • 18000
Cl 88000
¥ix~o~~H,J~d s
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...
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Net 12000
profit

Calculate:
lose nor gain anything .
a} The number of units by selling which the company will neither
bf~ j:8~I~liles'heede8 to earn a profit of 20% on sales .
to reduce the selling
.EL ___ .!.~.~-~~t~?.Y~~~-which should be sold to obtain the present profit if it is propos,e:d
1?9ce_ . .'. ~r: 1 ~ ~0%.~p~ 25%.
·d)
1

Ye·ar'c
The·se1ling price·to be fixed to bring down its break even point
~-1~ .) c.:~ 1;
8. F_r9~-~~~'!?ll~~i~g information calculate IRA:
ash ihflows (Rs) ..... ...
" ~.
to 500 units under prpsent conditions .
Il
[15]

- -"·- .............a....... ,. I
~-L~ppgr :l·1!1'qn.:: · !
2.8000Jnitial:.qutlay :-R~ 20000
3-10000h:!rr •J · ._ I
4°4000.: ::_,..... :. ,.. ·-. ··-. J

are as follows:
-
Presen t value' at Re {.,_,receivable at the end of the year 1 ,2, 3 and 4
__ ...,. ..................
.,

Vr1 Yr2 Yr3 Yr4

1~/o 0.892 0. 797 0. 712 0.636 :j
1-3%-0:&85-0~-783· 0.698·-0.613
f4%"tv.877 0.770 0.675 0.592
1'5f/o 0.867: 0.,7,56 o.ssa 0.572
1p% O~pJB~7r~3.0.q~;1,.0.552 [ 5+101
the difference methods of calculation of dep~eciatio?· r:-- ,: :: , 1,.-
9. ~~at dO,YR,~ /P~an b,ri-~epreciation? Explain
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are given
sta business with Ten taxies.The various expenses incurred by him [ 1sJ
1,1r. 5;ngh ha$ rted a transport
rP- be/ow:
cost of eac~ taxi = Rs 75000
salary of office staff- Rs 1500pm
I salary of garage supervisor- Rs2
Rent of garage R's 1 OOO pm
000 pm

r Drivers salary· (per taxi) Rs 400

Road tax and repairs per taxi
Insurance premium@ 4% of
Rs
cos
km
pm

t
2160pa
pa
and at the end of whi ch It /s estimated to be sold at Rs
15000.A taxi runs an
litre of petrol costing
The life of a taxi is 300000 It runs emp ty. Petrol consumption Is 9km per
th of whi ch 20%
average of 4000 km per mon enses are Rs 1Oper100 km.
Rs 6.30 per litre. Oil and other exp hire charges is Rs 1.80 per kilo
meter. Find out the profit
ning a taxi per kilome ter if the
Calculate the cost of run
e in the first year of operation.
that Mr. Singh may expect to mak
[15 ]
11.
• io\\~~ is !he Trial Balance of
Raj Traders as on 31.3.1999 : . AS'
Credit Balances 42000
Debit Balances As
16 oooCa ital 12000
4800 Creditors 6400
3 oooBills Pa abfe 500
20 ooo Wa es Oulslandin 1000
4 ooo Provision for Doubt(ul Debt
s 10000
• 1 200 Gros s Profit
2000 '
1600
3000
... 12 000
Tat 12¾ Interest 4,300
"' > I : 1 ' 171,000
" ,.... _
71,900
t as_o~ ~a~~ft~-~gr~ ~
Los s Acc ount for the yea r ended 31.3.1999 and a13alance,.Sh~§
~:efeparfa.P1!gfiJ and
~t~. : .
.. .. 1ili/ [o}JQ°'f'Jqg ?d)y}tm~ , , .
(3)' Rent·1s prepa1d for Rs 200. oun t on deb tors are to be made both at 5%
on
[. •
A pro vision for dou btful deb ts and a provision for disc
(b)
., Debtors.
p.a.; arid
,Depredate machineries@ 10% •
furniture @ 20% p.a.
a dishonour:d bill of Rs_ 600 .
(d), Bills receivable include s to be earn ed.. forw ard.
nt exp ense 1s
(e) • 3f4tb of the advertiseme

••• END OF PAPER ••• ,. ...

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