‫ ريم الجعبري‬: ‫االسم‬

21620041 : ‫الرقم الجامعي‬

2 : ‫الشعبة‬

Cost accounting a managerial emphasis

Solution of chapter 3
3-17 page 116

Manufacturing sold=410,000 s.p= 68$ per uint

V.c= 60$ f.c= 1,640,000

1- a-c.m?? b-oprating income???

C.m= s.p-v.c

68$-60$=8$

1a-( cm *Q)-f.c = oprating income

( 8*410,000)-1,640,000=

3,280,000-1,460,000=1,640,000

2- f.c=5,330,000 v.c=54$

c.m= s.p-v.c

68$-54$=14$

(c.m*Q)-f.c=oprating income

(14*410,000)-5,330,000=410,000
27-3 page 118

Sales mix

1- BEP??
The 60%/40% sales mix implies that, in each bundle, 3 units are sold
to new customers and 2 units are sold to upgrade customers

c.m of bundle new customers=3*130=390

c.m of bundle upgrade customers=2*80=160
c.m of bundle=390+160=550
B

BEP=F.C/C.M

=16500000/550=30,000 bundle

BEP in units is:

Sales to new customers: 30,000*3= 90,000 units

Sales to upgrade customers: 30,000*2= 60,000 units

Total number of units to breakeven= 150,000 units

2- When 170,000 units are sold, mix is: -

Units sold to new customers=60%*170,000= 102,000

Units sold to upgrade customers=40%*170,000= 68,000

Revenues ($195 * 102,000) + ($115 * 68,000) $27,710,000

Variable costs ($65 × 102,000) + ($35 × 68,000) 9,010,000

Contribution margin 18,700,000

Fixed costs 16,500,000

Operating income $ 2,200,000

3a- At New 40%/Upgrade 60% mix, each bundle contains 2 units sold to
new customers and 3 units sold to upgrade customers.

c.m of bundle new customers=2*130=260

c.m of bundle upgrade customers=3*80=240
c.m of bundle=260+240=500

BEP=F.C/C.M

=16500000/500= 33,000 bundles

BEP in units is:

Sales to new customers: 33,000*2=66,000 units

Sales to upgrade customers: 33,000*3=99,000 units

Total number of units to breakeven= 165,000 units

3b- At New 80%/ Upgrade 20% mix, each bundle contains 4 units sold to
new customers and 1 unit sold to upgrade customers.

c.m of bundle new customers=4*130=520

c.m of bundle upgrade customers=1*80=80
c.m of bundle=80+520=600

BEP=F.C/C.M

=16500000/600= 27,500 bundles

BEP in units is:

Sales to new customers: 27,500*4= 110,000 units

Sales to upgrade customers: 27,500*1=27,500units

Total number of units to breakeven= 137,500units

3c- comment the reselt

As Chartz increases its percentage of new customers, which have a higher

contribution margin per unit than upgrade customers, the number of units
required to break even decreases:

New Upgrade Breakeven

Customers Customers Point
Requirement 40% 60% 165,000
3(a)
Requirement 1 60% 40% 150,000
Requirement 80% 20% 137,000
3(b)