Change 1999 Volumes to 2135537

You have to consider always realized price and not net price(i.e. Price after Cash Discounts)

Variable Fixed
Labour Rent
RM SGA
Power Dep
Repair Interest
Insurance

General (Jan -June '00)

Product 100 Series

SPU after Cash Discount 2.42
Units 996859
VCU 1.26
CMU 1.16

Product 200
SPU after Cash Discount 2.52
Units 712102
VCU 1.37
CMU 1.15

Product 300 Series

SPU after Cash Discount 2.7
Units 501276
VCU 1.55
CMU 1.15

Lost CMU for 300 Series 576467.4

June-Dec '00

Product 100 Series

SPU after Cash Disco 2.22
Units 996859
VCU 1.26
CMU 0.96 CMU 870000
New CMU 960000

Product 200
SPU after Cash Disco 2.52
Units 712102
VCU 1.37
CMU 1.15

Product 300 Series

SPU after Cash Disco 2.7
Units 501276
VCU 1.55
CMU 1.15
 100 200 300
CMU 0.96 1.15 1.15 (Revised nos after 6 months)
CM Ratio 0.432432 0.456349 0.425926 Product 2 Seems very Good
Profit -0.07 -0.15 -0.22

Labour Costs 0.145238

Labour Costs 0.140476
Labour Costs 0.166667

CMU/LH 6.609836 8.186441 6.9

End of year December '99

Sales 869.5
Inventory 1302.2 Assumed Inventory Turnover at 5 Times as COGS/5)
Dep 5650 (Net Fixed Asset Value at Dec '99)
Receivables 1304.25

Current Ratio 2
Current Assets 3475.95

Conversion Costs Cost of Goods Manufactured - Material Cost

Six months until June '00

Product Sales 100 996859 2.42 2412399 0.433876
Product Sales 200 712012 2.52 1794270 0.322704
Product Sales 300 501276 2.7 1353445 0.24342
5560114

Overhead Costs 100 200 300

Rent 0.09 0.15 0.19
SGA 0.59 0.57 0.66
Dep 0.26 0.42 0.37
Interest 0.02 0.04 0.05
Other Factory Costs 0.07 0.11 0.11
1.03 1.29 1.38
Units 2135537 1029654 986974
Overheads 2199603 1328254 1362024
Selling Exp/Sales 0.177686 0.174603 0.177778
 A B C The company primarily uses A to manufacture
Quantity 5000 2500 10000 b=1/2 a
Labour 45000 c= 2 a
NRV 1 2
Replacement 6 Cost of Taking a Decision is the NRV of the Pro
Cost 5000 5000 60000
Statistical Method
rily uses A to manufacture electronic components.

ision is the NRV of the Product.