Scribd Logo
Upload

Welcome to Scribd!

  • 1 views

    Ma workbook Ekta 22.186

    Uploaded by

    anushka.khanna777

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Ma workbook Ekta 22.186

    Uploaded by

    anushka.khanna777
    1 views15 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    1 views15 pages

    Ma workbook Ekta 22.186

    Uploaded by

    anushka.khanna777

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 15

    Question 2

    Initial protection

    selling price 850


    units sold 500
    revenue 425000
    variable cost per unit 250
    variable cost 125000
    fixed cost 10000
    profit 290000

    part 1

    case 1 case 2
    change in selling price change in units sold
    selling price 270 selling price 850
    units sold 500 units sold 16.66667
    revenue 135000 revenue 14166.67
    variable cost per unit 250 variable cost per unit 250
    variable cost 125000 variable cost 4166.667
    fixed cost 10000 fixed cost 10000
    profit 0 profit 0

    case 3 case 4
    change in variable cost pu change in fixed cost
    selling price 850 selling price 850
    units sold 500 units sold 500
    revenue 425000 revenue 425000
    variable cost per unit 830 variable cost per unit 250
    variable cost 415000 variable cost 125000
    fixed cost 10000 fixed cost 300000
    profit 0 profit 0
    part 2
    quantity profit
    290000
    500 290000
    600 350000
    700 410000
    800 470000

    part 3

    selling price 860


    units sold 600
    revenue 516000
    variable cost per 280
    variable cost 168000
    fixed cost 10000
    profit 338000
    Scenario Summary
    Current Values: worst better best
    Changing Cells:
    $J$24 860 700 860 1000
    $J$25 600 300 600 800
    $J$27 280 250 280 200
    Result Cells:
    $J$30 338000 125000 338000 630000
    Notes: Current Values column represents values of changing cells at
    time Scenario Summary Report was created. Changing cells for each
    scenario are highlighted in gray.
    question 1
    packs 6000

    incremental approach
    cost benefit analysis of export offer

    Particulars Per unit cost Costs Benefits


    Export Sales (6000packs@30) 30 180000
    Saving and Maintenance Cost 1000
    Differential Cost
    Direct Materials 10 60000
    Direct Labour 7 42000
    Variable Overheads
    Factory Overheads 4 24000
    Office and Selling Overheads 3 18000
    Additional Fixed Cost 10000
    Rental Income Foregone 9000
    163000 181000

    Incremental Benefit 18000

    Total Profit Approach

    Option 1-Status quo i.e. reject the export offer and sell in home market
    Option2-Accept the export offer and sell in both the markets

    Under Option 1 20000


    Under Option 2 26000

    Particulars Per Unit Co I II


    Export Sales(6000packs@30) 30 0 It is advisable to go fo
    Sales in Home Market 60 1200000 1200000
    Rental Income 9000 -
    Total Revenue 1209000 1200000
    Variable Costs:
    Direct Material 10 200000 260000
    Direct labour 7 140000 0
    Variable overheads:
    Factory 4 140000 182000
    Office and Selling 3 0 0
    Maintenance Cost 1000
    Factory 240000 240000
    Office and selling 120000 120000
    Additional Fixed cost 10000
    Total Cost 841000 812000
    Profit(Total Revenue -Total Cost) 368000 388000
    Benefits are more than the cost hence, it is advisable to take up this offer

    It is advisable to go for Option 2 over Option 1


    Cost Benefit Analysis of Export

    (A) Particulars Cost Benefits


    Offered sales Price 250
    Variable Costs:
    Direct Material 160
    Direct Labour 20
    Variable Overheads 50
    Royalty 10 Offer should not be accepted as the offer price
    Excise Duty 30 is lower than the Variable cost of manufacturing.
    Total 270 250

    (B)
    Particulars Amount
    Sales Price 345
    Less: Profit 50
    Less:Variable Selling Overheads 5
    Price to be quoted 290 Company should quote the price @ 290
    s the offer price
    of manufacturing.
    Product Selling Price Variable Cost (per unit) CPU Sales Mix Weighted CPU
    A 200 120 80 0.2 16
    B 160 120 40 0.3 12
    C 100 40 60 0.5 30
    total 58

    Overall BEP Fixed Cost 1160000 20000


    Composite CPU 58

    Table For Computation of Product Value


    Product Weighted Average S.P. Weighted Average V.CWeighted CP BEP(in Units)
    A 40 24 16 4000
    B 48 36 12 6000
    C 50 20 30 10000
    total 138 80 58

    Overall P/V Ratio Total Fixed Cost 42%


    Overall BEP

    Table of Predicted Cost and Revenue

    Units Fixed Cost Variable Cost Total Cost Sales Value


    10000 1160000 800000 1960000 1380000
    15000 1160000 1200000 2360000 2070000
    20000 1160000 1600000 2760000 2760000
    25000 1160000 2000000 3160000 3450000
    30000 1160000 2400000 3560000 4140000
    Overall BEP chart of PQR ltd.
    4500000
    4000000
    3500000
    3000000
    2760000
    2500000
    rupees

    2000000
    1500000
    1000000
    500000
    BEP(in value) 0
    1 2 3 4 5
    800000
    units
    960000
    1000000
    2760000 Column E Column F

    Profit Volume Chart


    800000
    600000
    400000
    200000
    profit/loss

    Profit/Loss
    -580000 0
    1 2 3 4 5
    -290000 -200000
    0 -400000
    290000 -600000
    580000
    -800000
    sales(in units)
    5

    5
    ProducSelling Price (SP) Raw MaterialLabourVariable O
    P 1000 300 200 50
    Q 1500 500 300 100
    R 1800 600 315 150

    A)Scenario: RM Limited to 15,000 KG

    Product UNITS PRODUCED CONTRIBUTION


    Q 800 360000
    R 100 73500
    TOTAL 433500

    rank products by contribution per kg - Q>R>P

    allocation of raw material :


    Q requires 800*15=12000 kg (fully produced )
    remaining raw material =15000-12000 =3000 kg

    R requries 30 kg/unit
    3000/30 =100 units

    B)Scenario: Labour Limited to 7,000 hrs

    Rank products by contribution per hour - R>Q>P

    Allocate labor:
    R requries 6.3hrs/unit = produce 7000/6.3 = 1,111 units (but demand 1000)
    fully produce R : 1000*735 = 735000
    remaining labor: 7000-(1000*6.3)=700 hrs

    Q requires 4 hrs/unit = produce 700/4 = 175 units


    Product UNIT PRODUCED CONTRIBUTION
    R 1000 735000
    Q 175 78750
    TOTAL 813750

    HIGHEST TOTAL CONTRIBUTION IS 813750


    RM RequireLabour HoursExpected DemaTotal VariaContributio
    15 4 800 550 450
    25 6 950 900 600
    30 6.3 1000 1065 735
    Contributi contribution per hour labour
    30 112.5
    24 100
    24.5 116.666666667

    You might also like