The document provides financial information for a company including sales, costs, margins, and budgets at different production levels. It includes an income statement using the gross margin and contribution margin methods. The company's break-even point is 35,385 units, with a margin of safety of 82.3% at its installed capacity of 200,000 units.
The document provides financial information for a company including sales, costs, margins, and budgets at different production levels. It includes an income statement using the gross margin and contribution margin methods. The company's break-even point is 35,385 units, with a margin of safety of 82.3% at its installed capacity of 200,000 units.
The document provides financial information for a company including sales, costs, margins, and budgets at different production levels. It includes an income statement using the gross margin and contribution margin methods. The company's break-even point is 35,385 units, with a margin of safety of 82.3% at its installed capacity of 200,000 units.
direct material per unit 5 direct labour per unit 3 mfg overhead per unit 1 selling and admin per unit 0.25 admin and other overhead value 80000 selling and administrative value 35000 installed capacity units 200000 budgeted productions and sales units 100000
income statement- gross margin method
sales 1250000 less: cost of good sold direct material 500000 direct labour 300000 mfg overhead 100000 cogs 900000 gross margin 350000 gross margin % 28 selling and admin 60000 admin and other overhead 80000 net margin 210000 net margin% 16.8 new budgeted production and sales 100000 150000 200000
income statement- contribution method
per unit value sales 12.5 1250000 12.5 1875000 12.5 2500000 less: Varibale expenses direct material 5.00 500000 5.00 750000 5.00 1000000 direct labour 3.00 300000 3.00 450000 3.00 600000 mfg overhead 1.00 100000 1.00 150000 1.00 200000 selling and admin 0.25 25000 0.25 37500 0.25 50000 total varibale cost 9.25 925000 9.25 1387500 9.25 1850000 contribution 3.25 325000 3.25 487500 3.25 650000 contribuiton % 26 26 26 fixed cost admin and other overhead 0.80 80000 0.53 80000 0.40 80000 selling and administrative 0.35 35000 0.23 35000 0.18 35000 total fixed cost 1.15 115000 0.77 115000 0.58 115000 net margin 2.10 210000 2.48 372500 2.68 535000 net margin % 16.8 19.86667 21.4
Break even Level ( no of units) 35385 35385 35385
Break even Level (Value) 442308 442308 442308 Break even as % of capacity ( Units) 17.7 17.7 17.7 Break even % in value terms 17.7 17.7 17.7 Margin of safety (Volumes) 164615 164615 Margin of safety (%) 82.30% 82.30% 82.30%
Dairy and Eggs___Milk_Cheese_Yogurt_Eggs_Butter_Bakery Products___Bread_Pastries_Cakes_Bagels_Meat and Seafood___Beef, pork, lamb, etc._Poultry (e.g., chicken, turkey)_Fish (e.g., salmon, cod)_Shellfish (e.g., shrimp, mussels)_Canned and Pa