Beruflich Dokumente
Kultur Dokumente
Consider All
Alternative 1: Alternative 2:
Present
New
Structure
Machines
$ 2,016,000 $ 2,016,000
Revenues:
Cost of Goods Sold:
Direct Materials
Direct Labor
Variable Manufacturing Overhead
Fixed Manufacturing Overhead
Gross Margin
Operating Expenses:
Variable Marketing
Fixed Administrative
Operating Income
$
$
24,000
Consider Relevant
Alternative 1:
Present
Structure
$
-
288,000
624,000
216,000
300,000
588,000
288,000
528,000
240,000
350,000
610,000
624,000
216,000
300,000
(1,140,000)
288,000
140,000
160,000 $
288,000
140,000
182,000
$ (1,140,000)
22,000 Difference
22,000
units
Consider Relevant
Alternative 2:
New Machines
$
-
Consider Diferrence
528,000
240,000
350,000
(1,118,000)
(96,000)
24,000
50,000
22,000
###
$ (1,118,000)
22,000
Difference
Present Structure
Per Unit
Totals
Amounts
$ 3,360,000 $
96.00
Traditional Format:
Revenues:
Cost of Goods Sold:
Direct Materials
385,000
Direct Labor
805,000
Variable Manufacturing Overhead
420,000
Fixed Manufacturing Overhead
910,000
Cost of Goods Sold
2,520,000
Gross Margin
840,000
Operating Expenses:
Variable Marketing
280,000
Fixed Administrative
175,000
Total Operating Expenses
455,000
Operating Income
$
385,000 $
You are offerred the opportunity to sell:
11.00
23.00
12.00
26.00
72.00
24.00
8.00
5.00
13.00
11.00
1,000 @
Present Structure
Per Unit
Totals
Amounts
$ 3,360,000 $
96.00
Contribution-Margin Format:
Revenues:
Variable Expenses:
Direct Materials
385,000
Direct Labor
805,000
Variable Manufacturing Overhead
420,000
Variable Marketing
280,000
Total Variable Costs
1,890,000
Contribution Margin
1,470,000
Fixed Expenses:
Fixed Manufacturing Overhead
910,000
Fixed Administrative
175,000
Total Fixed Costs
1,085,000
Operating Income
$
385,000 $
11.00
23.00
12.00
8.00
54.00
42.00
26.00
5.00
31.00
11.00
35,000
$70.00
With Special Order
Difference
Totals
3,430,000
Totals
$ 70,000
396,000
828,000
432,000
288,000
1,944,000
1,486,000
11,000
23,000
12,000
8,000
54,000
16,000
910,000
175,000
1,085,000
401,000
$ 16,000
15,000
30.00 per unit
Buy
180,000
120,000
60,000
30,000
$
$ 390,000 $
^^^^^^
$
26.00 $
450,000
450,000
30.00
$
Better Option
Per Unit
Buy
180,000
120,000
60,000
30,000
105,000
$
495,000 $
450,000
450,000
^^^^^^
33.00 $
30.00
Chris Hogan, a college professor has the ooportunity to visit the University Of Auckland for the next 12 months:
Hogan provides the following:
OSU
Auckland
Salary
$ 100,000 $ 120,000
Food
$ (10,000) $ (13,000)
Rent
$ (24,000)
Transportation
$ (4,000) $ (9,000)
$ 86,000 $ 74,000
However, Hogan has negelcted on item, she can rent her house in Columbus for $18,000.
Salary
Food
Rent
Lease Columbus House
Transportation
OSU
Auckland
$ 100,000 $ 120,000
$ (10,000) $ (13,000)
$ (24,000)
$ 18,000
$ (4,000) $ (9,000)
$ 86,000 $ 92,000
OR:
Salary
Food
Rent
Lease Columbus House
Transportation
OSU
Auckland
$ 100,000 $ 120,000
$ (10,000) $ (13,000)
$ (24,000)
$ (18,000)
$ (4,000) $ (9,000)
$ 68,000 $ 74,000
Sales
Variable Expenses
Contribution Margin
Fixed Costs
Net Operating Income
Smith
Food
Company Service
$
700 $ 250
410
210
290
40
150
54
140 $ (14)
Consumer
Markets
$
450
200
250
96
$
154
Sales
Variable Expenses
Contribution Margin
Traceable Fixed Costs
Division Segment
Common Fixed Costs
Net Operating Income
Smith
Food Consumer
Company Service Markets
$
700 $ 250 $
450
410
210
200
290
40
250
110
30
80
180 $
10 $
170
40
$
140
Thus, they'd be $10 worse off not $14 better off by dropping
Food Service.
Sales Price
Variable Exp. Per unit
C/M per unit
X
$ 100.00 $
80.00
$ 20.00 $
Number of DL hours
You have:
Compute:
C/M per DL hour
Ranking
Y
70.00 $
40.00
30.00 $
Z
40.00
30.00
10.00
$
4.00 $
3.75 $
5.00
middle
worst
best
Solution:
Manufacturing only product Z
Now, consider:
Maximum demand
Make
Then
Then
Total Production
X
8,000
Y
5,000
Z
15,000
Hours Used
15,000
30,000
40,000
10,000
80,000
8,000
8,000
1,250
1,250
15,000
Original Cost
Useful Life
Current Age
Remaining Life
Accumulated Depreciation
Book Value
Current Cash Disposal Value
Terminal Disposal Value (at end of remianing life)
Annual Cash Operating Costs
Current Machine
$
800,000
8 years
3 years
5 years
$
300,000
$
500,000
$
75,000
$
$
190,000
Proposed
Replacement
$
550,000
5 years
- years
5 years
n/a
n/a
n/a
###
$
80,000
Keep
$ 2,000,000
Replace
$ 2,000,000
950,000
400,000
500,000
1,450,000
$
550,000
425,000
550,000
1,375,000
$
625,000
Remaining Years Together
Keep
950,000
Replace
$
400,000
950,000
550,000
75,000
475,000
875,000
Together
Difference
$
-
Keep 1
$ 400,000
550,000
190,000
100,000
(425,000)
(550,000)
75,000
$ (75,000)
290,000
$ 110,000
Difference
$ 550,000
Keep 1
$ 190,000
(475,000)
$
75,000
$ 190,000
Together
Keep 2, 3, 4, 5
$ 400,000
Repl 1
Repl 2, 3, 4, 5
$ 400,000 $ 400,000
190,000
80,000
80,000
100,000
290,000
$ 110,000
Keep 2, 3, 4, 5
$ 190,000
$ 190,000
425,000
110,000
110,000
615,000
190,000
$ (215,000) $ 210,000
Repl 1
Repl 2, 3, 4, 5
$
80,000 $ 80,000
475,000
555,000 $
80,000
Monthly Needs
Cost Per Unit
Discount Available if purchase one year's needs
Interest Rate
Part A.
Purchase each
Purchase Amount
Cost per Unit
Cost Per Order
Orders Per Year
Cost of Units
Opportunity Cost:
Cost Per Order
Divide by 2
Average Investment in Inventory
Interest Rate
Lost Interest
Annual Cost
5,000
12.00
5%
12%
Year
$
$
Month
60,000
11.40
684,000
1
$
$
$
$
$
684,000
684,000
2
342,000
12%
$
$
5,000
12.00
60,000
12
41,040
725,040
60,000
2
30,000
12%
720,000
3,600
723,600
1.
25 X
10,000
$ 250,000
12
3
1
16 X
10,000
160,000
$ 90,000
25 X
10,000
$ 250,000
12
3
1
16 X
10,000
160,000
32 X
10,000
$ 320,000
$
Increase in C/M from Special Order
Revenue from Regular Sales
12
3
1
2
18 X
$
10,000
180,000
C/M from Regular Sales
Increase (Decrease) in operating income from accepting Special Order
Spec:
Reg:
10,000 @ (25-16)
- @ (32-18)
=
=
$
$
Spec:
Reg:
20,000 @ (25-16)
(12,857) @ (32-18)
12,857 =
20,000
0.642857
=
=
90,000
90,000
$ 180,000
(180,000)
$
-
90,000
140,000
$ (50,000)
1.
2.
Purchase cost =
IDR 27,300
IDR 9,100 per $
= $
Cost to purchase:
400,000 figurines at
$ 3.00 =
Cost to Manufacture:
Variable
Incremental Fixed
400,000 figurines at
$ 2.85 =
Purchase cost =
Cost to purchase:
400,000 figurines at
$ 3.40 =
Cost to Manufacture:
Variable
Incremental Fixed
400,000 figurines at
$ 2.85 =
1,200,000
$
$
1,140,000
200,000
1,340,000
1,360,000
1,140,000
200,000
1,340,000
Revenue
Costs:
Variable cost of CDs, etc.
Development
Market/Admin
Relevant increase (decrease) per unit on
operating income
$
(30)
-
160 $
165
1.
Revenue from Regular Sales
Variable Manufacturing Costs
Direct Materials
Direct Labor
Variable Manu. OH
Variable Marketing Expenses
26 X
3,500
5
1
4
2
12 X
3,500
$
Lost C/M from Regular Sales
This is the opportunity cost
2.
Selling Price per unit:
Variable Costs per unit:
Purchase Cost
Direct Materials
Direct Labor
Variable Manu. OH
Variable Marketing Expenses
Variable Costs per unit:
Contribution Margin per unit
Units
C/M
91,000
42,000
49,000
Orangebo
$
20
Rosebo
$
26
5
1
4
1
11
9
18
2
20
6
$
X
3,500
$ 31,500
$
X
3,500
$ 21,000
Special Order
Regular Sales
13,000
13,000
-
units
units
units
$
$
Price
20 26 -
Var. Costs
11
12
52,500
49,000
3,500
Units
Effect on C/M
3,500 $
31,500
(3,500)
(49,000)
$
(17,500)
1.
Selling Price
Variable Costs:
Manufacturing
Marketing
Total Variable Costs
C/M per unit
R3
100
60
15
75
25
1.0
25
2.
C/M per hour of constrained resource (see above)
Sell Only R3:
R3
$
X
25
150,000
$ 1,475,000
1.
Selling Price
Variable Costs:
Manufacturing
Marketing
Total Variable Costs
C/M per unit
Hours of constrained resource (regular machine)
C/M per hour of constrained resource
Step One: Make and sell 20,000 S3
Note: 20,000 units equals 20,000 hours
R3
$
100
60
15
75
25
1.0
25
HP6
$
150
100
35
135
15
0.5
30
HP6
$
30
HP6
S3
150
100
35
135
15
0.5
30
120
70
15
85
35
1.0
35
20,000 hours
700,000 from S3
45,000
$ 1,350,000
300,000
$ 1,050,000