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  • Kinkead Equipment

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    Ashish Mahapatra
    276 views6 pages
    1) The document provides sales, cost, and profitability data for two product lines (EM and EI) under standard and flexible capacity levels. 2) Total revenue was higher under flexible capacity but variable manufacturing costs and fixed costs also increased, resulting in a smaller increase in profit before tax. 3) An analysis of variances identifies overproduction, an unfavorable sales mix, and higher than expected fixed costs as reasons for lower than expected profitability under flexible capacity.

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    Kinkead Equipment

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    1) The document provides sales, cost, and profitability data for two product lines (EM and EI) under standard and flexible capacity levels. 2) Total revenue was higher under flexible capacity but variable manufacturing costs and fixed costs also increased, resulting in a smaller increase in profit before tax. 3) An analysis of variances identifies overproduction, an unfavorable sales mix, and higher than expected fixed costs as reasons for lower than expected profitability under flexible capacity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    276 views6 pages

    Kinkead Equipment

    Uploaded by

    Ashish Mahapatra
    1) The document provides sales, cost, and profitability data for two product lines (EM and EI) under standard and flexible capacity levels. 2) Total revenue was higher under flexible capacity but variable manufacturing costs and fixed costs also increased, resulting in a smaller increase in profit before tax. 3) An analysis of variances identifies overproduction, an unfavorable sales mix, and higher than expected fixed costs as reasons for lower than expected profitability under flexible capacity.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 6

    EM

    Standard
    EI
    Total
    150
    24860
    107727
    40
    15

    EM

    Revenue/Unit
    Volume
    Variable Mfg Cost
    Selling Commission

    30
    82867
    15
    1

    Revenue
    Manufacturing
    selling Commission

    2486010
    1243005
    82867

    3729000
    994400
    372900

    6215010
    2237405
    455767

    1961070
    980535
    65369

    4336500
    1156400
    433650

    6297570
    2136935
    499019

    Contribution

    1160138

    2361700

    3521838

    915166

    2746450

    3661616

    Fixed Cost
    Manufacturing
    Selling
    Admn Exp
    Research Expenses
    Total

    1388000
    250000
    320000
    318000

    PBT

    30
    65369
    15
    1

    Flexible
    EI
    Total
    150
    28910
    94279
    40
    15

    2276000

    2276000

    1245838

    1385616

    Change
    LEVEL II
    LEVEL III

    Activity

    139778

    Mix
    Ideal Comp
    Revenue
    VC
    Contribution
    Fixed Cost
    PBT
    Change

    72522.375
    2175671.25
    1160358
    1015313.25

    ##
    ##
    ##
    ##

    Ideal Comp
    Revenue
    VC
    Contribution

    10344.625
    310338.75
    165514
    144824.75

    ##
    ##
    ##
    ##

    Volume

    LEVEL IV

    Market Size Change EM


    Expected market
    ###
    Actual Market
    ###
    Expected Market share0.1
    Expected contribution 14
    ###
    Market Share Change
    Expected Market Share0.1
    Actual Market Share 0.1
    Actual Volume
    ###
    Expected contribution 14
    0
    Activity Variance

    EI
    248600
    361375
    0.1
    95
    1071363

    Total

    Market Size Change


    Expected market
    Actual Market
    Expected Market share
    Expected contribution

    826390.5

    0.1
    0.08
    361375
    95
    -686613 -686612.5
    139778

    Market Share Change


    Expected Market Share
    Actual Market Share

    Actual
    EI

    EM
    29
    65369
    16
    0.98

    Total

    153
    28910
    42
    14.9

    94279

    1895701
    1045904
    64061.62

    4423230 6318931
    1214220 2260124
    430759 494820.6

    785735.4

    2778251

    3563986

    1399000
    245000
    325000
    325000
    2294000

    2294000

    1269986 24148.38

    Sales & Cost

    3082193
    2276000
    806193
    579423 F

    -115630 24148.38
    Price

    6318931

    6297570

    21361

    VC

    2754945

    2635954

    -118991

    FC
    Manufacturing
    Selling
    Admn Exp
    Research Expenses
    Variance

    439645 U
    139778

    -2294000

    -11000
    5000
    -5000
    -7000
    -115630

    EM
    EI
    Total
    828670
    248600 1077270
    653690
    361375 1015065
    cted Market share
    0.1
    cted contribution
    32.69225
    -203362
    et Share Change
    0.1
    0.1
    0.1
    0.1
    0.08 0.09288
    1015065
    32.69225
    -236283
    -439645

    Total market
    Share

    828670
    0.1

    653690
    0.1

    653690
    0.1

    653690
    0.1

    653690
    0.1

    82867
    30
    15
    1
    16

    65369
    30
    15
    1
    16

    65369
    30
    15
    1
    16

    65369
    29
    15
    1
    16

    65369
    29
    16
    0.98
    16.98

    2486010
    1325872

    1961070
    1045904

    1961070
    1045904

    1895701
    1045904

    1895701
    1109966

    1160138

    915166
    -244972

    915166
    0

    849797 785735.4
    -65369 -64061.6

    248600
    0.1
    24860
    150
    40
    15
    55

    361375
    0.1
    36137.5
    150
    40
    15
    55

    361375
    0.08
    28910
    150
    40
    15
    55

    361375
    0.08
    28910
    153
    40
    15
    55

    361375
    0.08
    28910
    153
    42
    14.9
    56.9

    TR
    TVC

    3729000
    1367300

    5420625
    1987563

    4336500
    1590050

    4423230
    1590050

    4423230
    1644979

    Contribution

    2361700

    3433063
    1071363

    2746450
    -686613

    2833180
    86730

    2778251
    -54929

    826390.5

    -686613

    21361

    Units
    Revenue
    VMC
    Com
    VC/Unit
    TR
    TVC
    Contribution

    Total market
    Share
    Units
    Revenue/u
    VMC
    Com
    VC/Unit

    -118991 42148.38

    VMC

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