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Tugas CH 7 - Amelia Zulaikha P
Tugas CH 7 - Amelia Zulaikha P
NIU : 468610
Kelas : MAK43 - Kelas B
Topic : Chapter 7. Cost Volume Profit Analysis
Exercise 7-39
Selling price $2,75 per pan
Variable Cost :
Direct Material $0,37 per pan
Direct Labor $0,63 per pan
Variable Factory Overhead $0,53 per pan
Variable Selling Expense $0,12 per pan
1. Compute the number of pans that must be sold for Werner to breakeven
𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡
Break-even Units= 𝑃𝑟𝑖𝑐𝑒 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡
= $159.775
$1,10
= 145.250 Units
2. Conceptual connection - What is the unit variable cost ? What is the unit variable manufacturing cost
Which is used in cost-volume-profit analysis and why?
Variable cost are costs that in total vary in direct proportion to changes in output within the relevant range.
variable manufacturing costs are costs of manufacturing which the changes depend of level of production output.
Both variable and Fixed costs are used in CVP analysis to estimate how costs, revenues and profits behave as volume changes.
CVP analysis help manager make a better decisions by performing sensitivity analysis.
3. How many pans must be sold for Werner to earn operating income of $13,530
𝑇𝑜𝑡𝑎𝑙 𝐹𝐼𝑥𝑒𝑑 𝐶𝑜𝑠𝑡+𝑇𝑎𝑟𝑔𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
Number of Units to earn target income = 𝑃𝑟𝑖𝑐𝑒 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡
= $159.775 + $13.530
$2,75 - $1,65
= $173.305
$1,10
= 157.550 Units
4. How much sales revenue must Werner have to earn operating income of $13,530?
Sales Revenue = 𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 𝑥 𝑢𝑛𝑖𝑡𝑠 𝑠𝑜𝑙𝑑
= $2,75 x 157.550
= $433.262,50
Exercise 7-50
Jellico Inc.'s projected operating income (based on sales of 450,000 units for the coming year is as follows :
Total
Sales $11.700.000
Total variable cost $8.190.000
Contribution margin $3.510.000
Total fixed cost $2.254.200
Operating Income $1.255.800
1. Compute : (a) variable cost per unit, (b)contribution margin per unit, (c) contribution margin ratio,
(d) break-even point in units, and (e) break-even pont in sales dollars.
(a) Variable cost per unit (b) Contribution margin per unit
= Variable cost = Contributin margin
Units sold Units sold
= $8.190.000 = $3.510.000
450.000 450.000
= $18,20 = $7,80
= $8
$26
= 30%
= $2.254.200
$8
= 289.000 Units
= $2.254.200 + $296.400
$26,00 - $18,20
= $2.550.600
$7,80
= 327.000 Units
3. Compute the additional operating income that Jellico would earn if sales were $50,000 more than expected
= 451.923 Units
Total
Sales $11.750.000 Additional operating income = $15.000
Total variable cost $8.225.000
Contribution margin $3.525.000
Total fixed cost $2.254.200
Operating Income $1.270.800
4. For the projected level of sales, compute the margin of safety in units, and then in sales dollars
= 161.000 Units
= $11.700.000 - $7.514.000
= $4.186.000
= $3.510.000
$1.255.800,00
= 2,80
6. Compute the new operating income if sales are 10% than expected
= 0,28
= $1.606.800