Beruflich Dokumente
Kultur Dokumente
Product
Units
(Demand)
Selling
Price
Raw
Material Cost
Contribution
per unit
Units
Produced
Total
Contribution
A 40 180 65 115 40 4600
D 50 240 95 145 50 7250
F 40 180 65 115 40 4600
16450
Total Contribution
16450
Fixed Expense
11000
Profit
5450
Formulas used:
Contribution per unit = Selling price Raw Material Cost
Contribution from Product = Units Produced * Contribution per unit
Total Contribution = Contribution from product A + Contribution from product B
+ Contribution from product C + Contribution from product D
Profits = Total Contribution Fixed Expense
Calculations to plan production levels
Raw material requirement
Material Product A
Product D
Total Raw Material
Required
A Demand of A - WIP at A5 + Demand D - WIP at C5
40 - 10 = 30 + 50-15 = 35 = 65
Material Product A
Product D
Total Raw Material
Required
C Demand of A - WIP at A5 + Demand D - WIP at D5
40 - 10 = 30 + 50-15 = 35 = 65
Material Product D
Total Raw Material
Required
E Demand D - WIP at E2
50-15 = 35 = 35
Material Product F
Total Raw Material
Required
F Demand F - WIP at F5
40-10 = 30 = 30
Cash available 10000
Expenditure on 7225
Cash Left 2775
Increased demand for product D 10
Per unit cost of raw material for D 65
Total cost for product D 10 units 650
Cash remaining: 2775 - 650 = 2125
Per unit cost of raw material for Product A 65
No of A units that can be produced: 2125 / 65 = 32 units of A