MAC3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 30 September 2025; 100% TRUSTED Complete, trusted solutions and explanations. Ensure your success with us.

[TYPE THE COMPANY NAME]




MAC3703 Assignment
2 (COMPLETE
ANSWERS) Semester
2 2025 - DUE 30
September 2025
NO PLAGIARISM

[Pick the date]




[Type the abstract of the document here. The abstract is typically a short summary of the contents of
the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]

,Exam (elaborations)
MAC3703 Assignment 2 (COMPLETE
ANSWERS) Semester 2 2025 - DUE 30
September 2025
Course
 Selected Accounting & Financial Management Techniques (MAC3703)
 Institution
 University Of South Africa (Unisa)
 Book
 Financial Management - Techniques

MAC3703 Assignment 2 (COMPLETE ANSWERS) Semester 2 2025 - DUE 30
September 2025; 100% TRUSTED Complete, trusted solutions and
explanations. Ensure your success with us.



Case Study 1: Foreign Exchange Market
Scenario: Travellers buy and sell currency through established banks at a large margin.
Disruptor banks introduce multi-currency accounts and peer-to-peer transactions, threatening
existing banks’ profits.

Required:
(a) Discuss the risks and benefits of the main strategic options open to the existing banks
(established financial institutions) to prevent the loss of the foreign exchange profits that they
currently enjoy.




Case Study 2: XYZF Ltd (Clothing Factory Shop)
Scenario: XYZF Ltd currently sells through wholesalers but wants to expand by launching an
online retail store accessible worldwide. The directors will steer the project themselves, with
John as project manager.

Required:
A.
(i) Identify and explain the roles of at least two business ecosystem participants in the current
XYZ Ltd ecosystem, and two in the new ecosystem resulting from the introduction of the online
retail store. (6)
(ii) Identify and explain at least two features that need to be present for the online store
application to satisfy digital customer needs. (4)

,(iii) What would be the effect of introducing the online retail store to XYZ Ltd business value
creation? (4)
(iv) Assuming that XYZ Ltd profit before tax is R2m (fully taxable), tax rate is 28% and they
distribute 20% of their profit after tax as a dividend, demonstrate how residual value is captured
and shared. (4)

B.
(i) Differentiate between the term management and leadership in relation to the XYZ online
retail store project. (4)
(ii) Which leadership style should the project manager adopt in managing the XYZ project and
why? (6)
(iii) Based on the culture of the project team, advise the project manager of the performance
appraisal approach he should adopt in monitoring and controlling the performance of the project
team. (14)

C.
(i) Discuss the feasibility of the creation and launching of the online store. (8)
(ii) Draft a project identification document for the online retail store project.




Case Study 3: TechGear Industries (MixMaster Pro Recall)
Scenario: TechGear recalls 50,000 units of its defective kitchen mixer. The board is worried
about its impact on EPS.

Financial information (year ended 30 June 2024):

 Profit after tax: R3,600,000
 Preference dividend: R1,200,000
 Ordinary share capital: ? (Issued @ R1 each)
 Convertible debt: R1,200,000 at 8% interest p.a.
 Convertible on 30 June 2026: 60 ordinary shares for every R1,200 debt
 Tax rate: 27%

Required:
(b) Calculate the basic earnings per share for the year ended 30 June 2024. (1)
(c) Calculate the diluted earnings per share for the year ended 30 June 2024. (3)
(d) Assuming a decline in earnings due to the recall and a fresh issue of 10m ordinary shares on
1 April 2025, calculate the forward-looking basic EPS for the year ending 30 June 2025. (6)




Case Study 4: Accent Ltd (Project Manager Recruitment)

, Scenario: Accent Ltd is a consultancy specialising in organisational change. They want to
recruit consultants with stronger project management skills. Katlego Danke (finance specialist) is
shortlisted and needs to prepare a presentation.

Required:
(a) Explain how an understanding of leadership style theories could help Katlego be more
effective as a project manager. (10)
(b) Describe the other project management skills, besides leadership skills, that Katlego should
include in his presentation, explaining why they are important. (15)




Case Study 5: Kingdom Kids (Joytab Tablets)
Scenario: Kingdom Kids sells kiddies’ tablets (“Joytab”) at R1,200 per tablet. Competitors may
cut prices by 15%. Management considers cutting prices by 20% and expects sales volume to
rise from 160,000 units to 210,000. Target profit is 10% of selling price.

Cost information (per unit unless otherwise stated):

 Direct material cost: R500
 Direct labour cost: R60
 Direct machine cost: R70
 Manufacturing overheads:
• Orders: 24,000 @ R80 each
• Testing hours: 4,800,000 @ R2 each
• Units reworked: 12,000 @ R100 each
 Other expenses:
• Research & design: R60 per unit
• Marketing & customer service: R150 per unit

Required:
(a) Define target costing and list at least four benefits of using target costing for their new variety
of black dolls. (4)
(b) Calculate the current cost per Joytab. (5)
(c) Calculate the target cost per Joytab. (3)
(d) Calculate the total profit of Joytab based on current and proposed sales volumes. (5)
(e) Advise the company on whether to implement the proposed price reduction. (2)
(f) Discuss the benefits and limitations of implementing Integrated Reporting for Kingdom Kids.
(6)




Case Study 6: Zmaxs Ltd (Shoe Manufacturer)