NESTLE

Variable Cost per Lot 26 Bs./L

COST BEHAVIOR
Cost Line
CONCEPT Behavior
High Point Estimated Cost
LowFunction
point
Direct Material Cost Variable Y = 100 Bs./L (X)
Total cost 10,200.00 7,600.00
Direct Labor Cost Variable Y = 68 Bs./L (X)
Total Variable Cost 7,800.00 5,200.00
Factory Lease Permanent Y = 8400 Bs.
Total Fixed Cost 2,400.00 2,400.00
Factory Depreciation Permanent Y = 6000 Bs.
Other Factory CostsNº 3
REQUIREMENT Semivariable Y = 2400 Bs. + 26 Bs./L (X)
TOTAL Y = 16800 Bs. + 194 Bs./L (X)
Y = 16800 Bs. + 194 Bs. /L. (X) Production Costs
Y = 7500 Bs. + 20 Bs. / L.(X) Administration and Sales Expenses
Y = 24300Cost
Bs. +Behavior
214 Bs. /L. (X) Total Cost Function
Total Unitary
Variable It varies Constant
Permanent
REQUIREMENT Nº 4 Constant It varies
SALES MIX
Semivariable It varies It varies

Y = A + bX Bs.
Y
Total Fixed Cost of the= Total Cost 27794 (24300 + 3494)
Mixture = A = Total Fixed Cost
b = Variable Unit Cost
Concept Milk Milk and Hazelnuts
X = Volume or Activity Level
Sale price 700.00 850.00
Variable cost 214.00 510.00
Factory Lease
Contribution margin
C/U Lots 486.00 340.00
Total cost
42.00
Mixed Contribution Margin 200
(3 L * 486) + (2 L * 340) = 427.6 Bs. /L 8,400.00
33.60 250
5 8,400.00
Mixture Balance Point = 28.00 300
Total Fixed Cost / Average Contribution Margin
8,400.00
Mixture Balance Point = 27794 Bs. / 427.6 Bs/l 65
Other Factory Costs:
C/U Lots Lots
Total cost
38.00 200 7,600.00
36.00 250 9,000.00
34.00 300 10,200.00

CONCEPT BS. LOTS

HIGH PTO 10,200.00 300
LOW PTO 7,600.00 200
DIFFERENCE 2,600.00 100
AND BALANCE POINT.

Constant
Flexible Budget (280 L) Real cost Variation Nature
28,000.00 29,000.00 - 1,000.00 Unfavorable
19,040.00 20,000.00 - 960.00 Unfavorable
8,400.00 8,400.00 - -
6,000.00 5,600.00 400.00 Favorable
Unit variable expense 9,680.00 20 Bs./L
10,000.00 - 320.00 Unfavorable
71,120.00 73,000.00 - 1,880.00 Unfavorable

Cost Function
Y = bX
Y=A
Y = A + bX

Sales Mix
Milk 3 3/5 0.6
Milk and Hazelnut 2 2/5 0.4
(850 * 40%) 5 1

Bs
Milk (60%) 39
Bs
Milk and Hazelnuts (40%)
Bs 26
65

Bs
Bs
Bs
AND BALANCE POINT.
TEMPLATE FOR PRACTICAL LEARNING BEHAVIOR EXERCISES

Cost Line Behavior Estimated Cost Function

TOTAL

Cost Behavior Total Unitary

Variable It varies Constant
Permanent Constant It varies
Semivariable It varies It varies

Y = A + bX
Y = Total Cost
A = Total Fixed Cost
b = Variable Unit Cost
X = Volume or Activity Level
COSTS AND BALANCE POINT

Flexible Budget (280 L) Real cost Variation Nature

- - -

Cost Function
Y = bX
Y=A
Y = A + bX