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    Materi Untuk Tugas Topik 2

    Uploaded by

    Violen Amelia
    This document outlines the projected costs and revenues for Roxor Watch Company's marketing segment. It includes budgets for promotional expenses like advertising, promotions, and sales salaries. It also accounts for variable costs of production, non-production costs, transportation, accounts receivable costs, and order processing. Fixed costs include short-run controllable costs and long-run non-controllable costs. Applying these costs and revenues to a marketing budget model estimates the segment's contribution at $166,750.

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    Materi Untuk Tugas Topik 2

    Uploaded by

    Violen Amelia
    41 views11 pages
    This document outlines the projected costs and revenues for Roxor Watch Company's marketing segment. It includes budgets for promotional expenses like advertising, promotions, and sales salaries. It also accounts for variable costs of production, non-production costs, transportation, accounts receivable costs, and order processing. Fixed costs include short-run controllable costs and long-run non-controllable costs. Applying these costs and revenues to a marketing budget model estimates the segment's contribution at $166,750.

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    This document outlines the projected costs and revenues for Roxor Watch Company's marketing segment. It includes budgets for promotional expenses like advertising, promotions, and sales salaries. It also accounts for variable costs of production, non-production costs, transportation, accounts receivable costs, and order processing. Fixed costs include short-run controllable costs and long-run non-controllable costs. Applying these costs and revenues to a marketing budget model estimates the segment's contribution at $166,750.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    41 views11 pages

    Materi Untuk Tugas Topik 2

    Uploaded by

    Violen Amelia
    This document outlines the projected costs and revenues for Roxor Watch Company's marketing segment. It includes budgets for promotional expenses like advertising, promotions, and sales salaries. It also accounts for variable costs of production, non-production costs, transportation, accounts receivable costs, and order processing. Fixed costs include short-run controllable costs and long-run non-controllable costs. Applying these costs and revenues to a marketing budget model estimates the segment's contribution at $166,750.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 11

    Promotional Efforts

    Advertising 50,000
    Promotions 25,000
    Salesman salary & travel 30,000
    Sales Commission 5%*sales

    Projected Cost driver incurrences by Marketing Research

    Volume Cost Drivers

    Products A B C
    Sales in Unit 20,000 5,000 7000
    Notable X1 X2 X3

    Product Unit Related Variable Costs


    Products A B C
    Selling Price per Unit 50.00 60.00 30.00
    Standar Production VC per unit (25.00) (35.00) (20.00)
    25.00 25.00 10.00
    Less:
    Non Production VC per unit
    1. Inventory Holding cost (2% * VC, 1
    month holding period) (0.50) (0.70) (0.40)
    2. Inventory Holding cost per unit (2.50) (1.30) (0.60)
    Contribution per Unit 22.00 23.00 9.00
    Notable c1 c2 c3

    Structural Cost Drivers


    Shipping Costs 50,000 g/km y1
    Paperwork 2,000 inv eqv y3

    Other Variable Cost of Complexity


    Transportation 1 g/km e1
    AR Cost 2 months average payment period at a cost of capital charge
    15% Annual rate (or 0.15/12 *2) = 0.025 of revenue
    Order Processiong Cost 2 inv eqv e3

    Specific Fixed Cost of Office District


    Short run, controllable 20,000
    Long run, non controllable 10,000

    Fixed Investment in Segment 1,000,000


    at a cost of capital charge
    /12 *2) = 0.025 of revenue
    Marketing Budget Model (For Sales Segment)
    Anticipated Net Segment Contribution of plan (estimated using Marketing Budget Model Formula)

    Products A B C Total
    Sales in Unit 20,000 5,000 7,000
    Selling Price per Unit 50 60 30
    Sales Revenue 1,000,000 300,000 210,000 1,510,000
    Sales Commission 50,000 15,000 10,500 75,500

    Total Contribution per product A B C Total


    Contribution per Unit 22 23 9
    Total Contribution per product 440,000 115,000 63,000 618,000
    Notable c1x1 c2x2 c3x3

    ey
    Transportation Cost 50,000
    AR Cost 37,750
    Order Processing Cost 3,000
    Notable e1y1 e2y2 e3y3

    Fixed Cost

    Short Run 20000


    Long Run 10000
    Cost of Capital for Investment 150,000
    Total FC 180000

    Promotional Cost for segment Contribution


    Advertising 50,000
    Promotions 25,000
    Salesman salary & travel 30,000
    Sales Commission 75,500
    Total Promotional Cost (PC) 180,500

    Segment Contribution Model


    c1x1 440,000
    c2x2 115,000
    c3x3 63,000
    -/- e1y1 (50,000)
    -/- e2y2 (37,750)
    -/- e3y3 (3,000)
    -/- FC (180,000)
    -/- PC (180,500)
    Segmental Contribution 166,750
    Budgeting the Segmental Contribution

    Products
    Sales Revenue
    Less: Variable Production Cost
    Production Contribution
    Less: Variable Non Production Cost

    PRODUCT CONTRIBUTION

    Less: Segment Variable Cost


    Transportation Cost
    AR Cost
    Order Processing Cost
    Sales Commission
    NET CONTRIBUTION

    Less: Short Run Controllable Fixed Cost


    Short run, controllable
    Advertising
    Promotions
    Salesman salary & travel

    SEGMENT CONTROLLABLE MARGIN

    Less: Long Run non Controllable Costs


    NET SEGMENT MARGIN
    Less: Charge for Fixed Corp Investment
    RESIDUAL SEGMENT MARGIN (SEGMENTAL EVA)
    A B C Total
    1,000,000 300,000 210,000 1,510,000
    (500,000) (175,000) (140,000) (815,000)
    500,000 125,000 70,000 695,000
    (60,000) (10,000) (7,000) (77,000)

    440,000 115,000 63,000 618,000

    50,000
    37,750
    3,000
    75,500 (166,250)
    451,750

    20,000
    50,000
    25,000
    30,000 (125,000)

    326,750

    (10,000)
    316,750
    (150,000)
    166,750
    Roxor Watch Company Ltd

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