Академический Документы
Профессиональный Документы
Культура Документы
Production
•Labor wages Labor hours
•Supervisory salaries Number of people supervised
•Maintenance wages Number of mechanic hours
•Depreciation of plant and machinery, Number of machine hours
supplies
• Energy cost Kilowatt hours
Marketing
•Cost of advertisements Number of advertisements
•Salaries of marketing personnel, Sales dollars
travel costs, entertainment costs
Distribution
•Wages of shipping personnel Labor hours
•Transportation costs including Weight of items delivered
depreciation of vehicles and fuel
Customer service
•Salaries of service personnel Hours spent servicing products
•Costs of supplies, travel Number of service calls
Step cost:
Step cost treated as a fixed cost Step cost treated as a variable cost
$150,000 A
Net Income
138,000 Sales C
120,000 Net Income Area
Dollars
D
90,000 Variable
Total Break-Even Point Expenses
60,000 Expenses 60,000 units
Net Loss
30,000 or $90,000
Area
18,000 B
Fixed Expenses
0 10 20 30 40 50 60 70 80 90 100
Units (thousands)
Sales
- Variable expenses
- Fixed expenses
Zero net income (break-even point)
Variable Fixed
Sales – Expenses – Expenses = net income
$1.50N – $1.20N – $18,000 = 0
$.30N = $18,000
N = $18,000 ÷ $.30
N = 60,000 Units
S – .80S – $18,000 = 0
.20S = $18,000
S = $18,000 ÷ .20
S = $90,000
Shortcut formulas:
Break-even = fixed expenses = $18,000 = 60,000
volume in units unit contribution margin .30
Variable + Fixed
Sales = expenses + expenses
$100,000 = $400N + $60,000
$400N = $100,000 – $60,000
N = $40,000 ÷ $400
N = 100 patients
Variable + Fixed
Sales = expenses + expenses
$90,000 = $400N + $60,000
$400N = $90,000 – $60,000
N = $30,000 ÷ $400
N = 75 patients
Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 2 - 30
Operating Leverage
Operating leverage:
a firm’s ratio of fixed costs to variable costs.
Per Unit
Selling price $1.50
Variable costs (acquisition cost) 1.20
Contribution margin and
gross margin are equal $ .30
Contribution Gross
Margin Margin
Per Unit Per Unit
Sales $1.50 $1.50
Acquisition cost of unit sold 1.20 1.20
Variable commission .12
Total variable expense $1.32
Contribution margin .18
Gross margin $.30
Copyright © 2014 Pearson Education, Inc. publishing as Prentice Hall 2 - 35
Learning Appendix 2A
Objective 8
Sales Mix Analysis
6K = 180,000
K = 30,000
W = 4K = 120,000