FAE September 2012

mrduffy

chursy wrote: »

Does anyone know how the breakeven calculation in Locust coffee is calculated .

breakeven is revenue/sales over contribution

contribution is gross profit / sales less cost of goods sold
or s price less prime costs

If i am incorrect please tell me ?

Accrual Intentions

chursy wrote: »

Does anyone know how the breakeven calculation in Locust coffee is calculated .

I looked at that today funnily enough. Its completely ****ed up my eyes. I defy anyone who says they would calculate that breakeven analysis just as the solution has done. There's no mention or idea of how much revenue the app is generating, therefore I have no idea how you decide what is breakeven.

froggatt2011

I'm totally stuffed!

Just wanted to share

ucd.1985

Found it.

ferike1

RE: locust coffee, I didn't even think to do a breakeven analysis.

supernova84

I'd love a Locust coffee right now

Chalk_Farm

Whats with this valuation method that Paul loves to use yet is not mentioned in any of the material - EBITDA multiple

In the Globaltech Packaging case using the EBITDA multiple to value a potential target he comes up with a value of €121M. Using the Net Asset valuation he gets €1,163M....bit of a difference!!??

it may not be Paul but I'm blaming him

I'm thinking I understand it now that its because of the IP rights that are not reflected in the earnings of the company.

Don't feel comfortable using the EBITDA multiple anyway as it changes depending on the industry/company...we were told in one of the case lectures to use 6 if doing a valuation then the mock or some other case it used 11 or something different.

Accrual Intentions

supernova84 wrote: »

I'd love a Locust coffee right now

Really? It sounds disgusting. That green and brown branding? Also they're clearly not using quality beans or materials since they're going in at the lower end of the market.

supernova84

Accrual Intentions wrote: »

Really? It sounds disgusting. That green and brown branding? Also they're clearly not using quality beans or materials since they're going in at the lower end of the market.

You obviously haven't been using your loyalty card. I just received a text inviting me to check out their delicious new coffee.

ferike1

I hate you guys...

supernova84

Chalk_Farm wrote: »

Whats with this valuation method that Paul loves to use yet is not mentioned in any of the material - EBITDA multiple

In the Globaltech Packaging case using the EBITDA multiple to value a potential target he comes up with a value of €121M. Using the Net Asset valuation he gets €1,163M....bit of a difference!!??

it may not be Paul but I'm blaming him

I'm thinking I understand it now that its because of the IP rights that are not reflected in the earnings of the company.

Don't feel comfortable using the EBITDA multiple anyway as it changes depending on the industry/company...we were told in one of the case lectures to use 6 if doing a valuation then the mock or some other case it used 11 or something different.

It depends really on the information that they give you. The key is not to use any valuation method in isolation, so if the information is there to calculate EBITDA then use it. 

supernova84

ferike1 wrote: »

I hate you guys...

Have a Locust coffee, tell Bill Williams supernova sent you and you'll get a free

ferike1

What happens if I don't have the smartphone app?

supernova84

Don't worry he's working on a new idea 'the locust chip'. Basically he'll insert a tiny chip into your arm so Locust will know customers every move from now on.

ferike1

What's the breakeven point on that?

Jame Gumb

"Just to let you know, the FAE Board said that the Locust Coffee IMP indicator is the finest indicator that they've ever seen. In fact, the Institute of Chartered Accountants in Afghanistan recently asked the Institute for a sample case study and the FAE Board chose to send Locust Coffee to them.

Of course, I wrote it..."

Jame Gumb

I remember the first time that I saw the Locust Coffee case...I spent ages on a "marketing indicator" talking about how the name was ridiculous and needed to be changed. How customers wouldn't like food or drink associated with biblical plagues and insect attacks. Then I saw the solution and realised that I was f..ked.

supernova84

ferike1 wrote: »

What's the breakeven point on that?

It's top secret

chursy

So lads how do we go about calculating the Locust cofee Break even point! i dont get it! I think i have drained all my technical knowledge after doing these new cases!

ferike1

I am going to run my own business like these people in the cases one day. No one is ever actually going to be aware of what needs to be done, I am going to vaguely dance around the work that needs doing and assign all kinds of specialist work to the first secondee/fresh out of contract ACA employee I can find.

I can smell the profits already.

Jame Gumb

supernova84 wrote: »

Don't worry he's working on a new idea 'the locust chip'. Basically he'll insert a tiny chip into your arm so Locust will know customers every move from now on.

Apparently the Locust Coffee smartphone app becomes self aware on September 4th 2012...in the panic Bill Williams tries to pull the plug but it's too late...while people are transformed into zombies whose only thought is obtaining their next Locust Coffee, plagues of locusts destroy every crop on the planet and humanity is virtually wiped out in a deadly battle between man and insect. A human resistance movement soon forms under Paul Monahan's leadership. However everyone gets killed pretty quickly because no orders are ever given...junior soldiers have to guess what to do on the battlefield. All hope rests with the ACCA. In other words, humanity is f..ked. Within 6 months, locusts are processing humans for food in the basement of CA House and mankind is no more.

rums08

froggatt2011 wrote: »

And what did they say about IMP?

MABF - Liam revised all the core areas in MA and BF - and did some questions. He asked us to steer clear of the cases book in MABF and asked us to concentrate on past FAE papers on MABF as well as mocks and new FAE past papers. He also said that there was no need to do the ACCA papers.

IMP - Shane went through IMP in the past papers (FAE) and said that though Paul Monahan said that they will step up IMP this year, the FAE Board cannot really ask anything that has not been dealt with in the past papers, mock papers and the case studies that were given to us by the institute. So nothing too technical is going to come up. Any indicator in IMP will focus around the feasibility of the system in comparison to the overall business strategy. He looked at Build V buy, outsourcing v in-house etc. So nothing to panic about IMP really. He even said that the text book is quite dated as it came out in 2010 and has not been updated since. But it might not do any harm to just go through it.

Hope this helps

ferike1

rums08 wrote: »

MABF - Liam revised all the core areas in MA and BF - and did some questions. He asked us to steer clear of the cases book in MABF and asked us to concentrate on past FAE papers on MABF as well as mocks and new FAE past papers. He also said that there was no need to do the ACCA papers.

IMP - Shane went through IMP in the past papers (FAE) and said that though Paul Monahan said that they will step up IMP this year, the FAE Board cannot really ask anything that has not been dealt with in the past papers, mock papers and the case studies that were given to us by the institute. So nothing too technical is going to come up. Any indicator in IMP will focus around the feasibility of the system in comparison to the overall business strategy. He looked at Build V buy, outsourcing v in-house etc. So nothing to panic about IMP really. He even said that the text book is quite dated as it came out in 2010 and has not been updated since. But it might not do any harm to just go through it.

Hope this helps

Great so the fact that we are struggling with IMP already and they are stepping it up despite having an outdated textbook. Good stuff institute. On the ball there.

Accrual Intentions

supernova84 wrote: »

Don't worry he's working on a new idea 'the locust chip'. Basically he'll insert a tiny chip into your arm so Locust will know customers every move from now on.

The chip is also linked to GPS navigation systems so that you can log on to the Locust website and see which of your friends are enjoying locust coffees and where at that particular point.

Bill Williams is some lad.

ferike1

Sean Quinn could learn a thing or two from him on how to run a company.

supernova84

There could be gap in the market for Locust Insurance. I'll have to write a memo to Bill, or should I send a letter? Feck it maybe a briefing paper will suffice.

reo49

FAE jokes.....how sad!

Jame Gumb

Yeah but to get to competent you have to recommend an electric shock feature to stop Locust customers going to a rival premises. If a Locust customer who has the chip embedded in their body goes to Starbucks or Insomnia, Bill Willliams should have the ability to electric shock them using a handheld device.

If you want to get to Highly Competent, you need to talk about the ethics of electrocuting three of the following four consumer groups: 1. Women 2. Children 3. Amputees 4. Goat herders

Apparently Chartered Accountants Uganda are seriously looking at adopting CAI's case study / indicators model.

froggatt2011

rums08 wrote: »

MABF - Liam revised all the core areas in MA and BF - and did some questions. He asked us to steer clear of the cases book in MABF and asked us to concentrate on past FAE papers on MABF as well as mocks and new FAE past papers. He also said that there was no need to do the ACCA papers.

IMP - Shane went through IMP in the past papers (FAE) and said that though Paul Monahan said that they will step up IMP this year, the FAE Board cannot really ask anything that has not been dealt with in the past papers, mock papers and the case studies that were given to us by the institute. So nothing too technical is going to come up. Any indicator in IMP will focus around the feasibility of the system in comparison to the overall business strategy. He looked at Build V buy, outsourcing v in-house etc. So nothing to panic about IMP really. He even said that the text book is quite dated as it came out in 2010 and has not been updated since. But it might not do any harm to just go through it.

Hope this helps

Thanks for that mucker. Any decent IMP cases/questions worth looking at?
Not surprised that we were given an outdated textbook. The APM elective book, even though it's a pretty good text, lists country stats from 2008/2009. Typical Institute!

levi

Favour to ask - I've been just double checking my questions/solutions for the cases and have found this thread very helpful but still have a few cases outstanding...

I don't have the question for Second String or New Line so if someone could upload those it would be greatly appreciated. I'm a repeat student so don't have access to the online material.

Thanks!