JESSIE FRANZ RADOMES

STRATEGIC BUSINESS ANALYSIS

Module 1 Assignment

Requirement 1

Compute for the product cost per unit for each case

Case A Case B Case C Case A Case B Case C

Direct Material 600,000.00 600,000.00 600,000.00 Direct Material 600,000.00 600,000.00 600,000.00
Direct Labor 400,000.00 400,000.00 400,000.00 Direct Labor 400,000.00 400,000.00 400,000.00
Variable OH 250,000.00 250,000.00 250,000.00 Variable OH 250,000.00 250,000.00 250,000.00
Fixed OH 850,000.00 850,000.00 850,000.00 Total Product Cost 1,250,000.00 1,250,000.00 1,250,000.00
Total Product Cost 2,100,000.00 2,100,000.00 2,100,000.00 Units Produced 50,000 25,000 40,000
Units Produced 50,000 25,000 40,000 Product cost per unit 25.00 50.00 31.25
Product cost per unit 42.00 84.00 52.50

Requirement 2

Compute for the inventory cost for each case

Case A Case B Case C Case A Case B Case C

End. Units 10,000 15,000 25,000 End. Units 10,000 15,000 25,000
Product cost per unit 42.00 84.00 52.50 Product Cost per unit 25.00 50.00 31.25
Inventory Cost 420,000.00 1,260,000.00 1,312,500.00 Inventory Cost 250,000.00 750,000.00 781,250.00
JESSIE FRANZ RADOMES
STRATEGIC BUSINESS ANALYSIS
Module 1 Assignment

Requirement 3
Prepare an income statement for each case

A certain company A certain company

Income Statement Income Statement
For the yr. ended Dec. 31 For the yr. ended Dec. 31

Case A Case B Case C Case A Case B Case C

Sales 6,300,000.00 2,625,000.00 2,100,000.00 Sales 6,300,000.00 2,625,000.00 2,100,000.00
Cost of Goods Sold (1) 2,520,000.00 2,100,000.00 1,050,000.00 Variable Costs (1) 1,650,000.00 1,312,500.00 675,000.00
Gross Profit 3,780,000.00 525,000.00 1,050,000.00 Contribution Margin 4,650,000.00 1,312,500.00 1,425,000.00
Less: Expenses (2) 400,000.00 312,500.00 300,000.00 Fixed Costs (2) 1,100,000.00 1,100,000.00 1,100,000.00
Net Income 3,380,000.00 212,500.00 750,000.00 Profit 3,550,000.00 212,500.00 325,000.00

Note 1 Note 1
Sold Units 60,000 25,000 20,000 Cost per sold unit 1,500,000.00 1,250,000.00 625,000.00
Product Cost per unit 42.00 84.00 52.50 Variable selling &
Cost of Goods Sold 2,520,000.00 2,100,000.00 1,050,000.00 other expenses 150,000.00 62,500.00 50,000.00
Total variable costs 1,650,000.00 1,312,500.00 675,000.00
Note 2
Variable selling & Note 2
other expenses 150,000.00 62,500.00 50,000.00 Fixed Overhead 850,000.00 850,000.00 850,000.00
Fixed selling & Fixed selling &
other expenses 250,000.00 250,000.00 250,000.00 other expenses 250,000.00 250,000.00 250,000.00
Expenses 400,000.00 312,500.00 300,000.00 Total fixed costs 1,100,000.00 1,100,000.00 1,100,000.00
JESSIE FRANZ RADOMES
STRATEGIC BUSINESS ANALYSIS
Module 1 Assignment

A certain company is selling a specific product with a selling price of P105.00. Data regarding costs incurred are as follows:

  Direct Materials P600,000  

  Direct Labor 400,000  
  Variable Factory Overhead 250,000  
  Fixed Factory Overhead 850,000  
  Variable Selling and Other Expenses
2.50  
Per Unit
  Fixed Selling and Other Expenses 250,000  

Data regarding units are as follows:

Case A Case B Case C

  Beginning Inventory 20,000 15,000 5,000

  Produced 50,000 25,000 40,000

Sold* 60,000 25,000 20,000

  Ending Inventory 10,000 15,000 25,000