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    Product Deletion

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    zakira29
    The document shows sales projections and cost calculations for 4 months. It calculates revenue, discounts, net revenue, direct costs (labor, materials, overhead), total direct costs, gross profits, and indirect costs to determine net profits. For each month, it takes the expected sales in units and prices to calculate revenue. It then applies discount rates to revenue to calculate discounts and net revenue. Direct costs are calculated by multiplying expected sales by cost rates. Total direct costs, gross profits, indirect costs (based on percentages), and net profits are then determined.

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    Product Deletion

    Uploaded by

    zakira29
    10 views28 pages
    The document shows sales projections and cost calculations for 4 months. It calculates revenue, discounts, net revenue, direct costs (labor, materials, overhead), total direct costs, gross profits, and indirect costs to determine net profits. For each month, it takes the expected sales in units and prices to calculate revenue. It then applies discount rates to revenue to calculate discounts and net revenue. Direct costs are calculated by multiplying expected sales by cost rates. Total direct costs, gross profits, indirect costs (based on percentages), and net profits are then determined.

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    Original Title

    Product Deletion (2)

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    The document shows sales projections and cost calculations for 4 months. It calculates revenue, discounts, net revenue, direct costs (labor, materials, overhead), total direct costs, gross profits, and indirect costs to determine net profits. For each month, it takes the expected sales in units and prices to calculate revenue. It then applies discount rates to revenue to calculate discounts and net revenue. Direct costs are calculated by multiplying expected sales by cost rates. Total direct costs, gross profits, indirect costs (based on percentages), and net profits are then determined.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
    10 views28 pages

    Product Deletion

    Uploaded by

    zakira29
    The document shows sales projections and cost calculations for 4 months. It calculates revenue, discounts, net revenue, direct costs (labor, materials, overhead), total direct costs, gross profits, and indirect costs to determine net profits. For each month, it takes the expected sales in units and prices to calculate revenue. It then applies discount rates to revenue to calculate discounts and net revenue. Direct costs are calculated by multiplying expected sales by cost rates. Total direct costs, gross profits, indirect costs (based on percentages), and net profits are then determined.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
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    of 28

    Product Deletion

    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue
    Discounts
    Net Revenue
    Direct Labour
    Direct Materials
    Direct Overhead
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000
    Discounts
    Net Revenue
    Direct Labour
    Direct Materials
    Direct Overhead
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits

    To find the ‘Revenue’ multiply the ‘Expected sales (units)’ by the prices
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts
    Net Revenue
    Direct Labour
    Direct Materials
    Direct Overhead
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600
    Net Revenue
    Direct Labour
    Direct Materials
    Direct Overhead
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits

    To calculate the ‘Discounts’ multiply the ‘Revenues’ by the ‘Discount’ rates.


    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue
    Direct Labour
    Direct Materials
    Direct Overhead
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400
    Direct Labour
    Direct Materials
    Direct Overhead
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits

    To calculate the ‘Net Revenues’ subtract the ‘Discounts’ from the ‘Revenue’.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour
    Direct Materials
    Direct Overhead
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000
    Direct Materials 60,000
    Direct Overhead 30,000
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits

    To find the ‘Direct costs’ multiply the ‘Expected Sales (units) by the direct cost. For example MO –
    Expected Sales (units) by the three direct cost amounts.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs
    Gross Profits
    Indirect Costs
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000
    Gross Profits
    Indirect Costs
    Net Profits

    To calculate the ‘Total Direct Costs’ add up the three (3) direct costs amounts.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits
    Indirect Costs
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400
    Indirect Costs
    Net Profits

    To Calculate the ‘Gross Profits’ subtract the ‘Total Direct Costs’ from the ‘Net Revenues’.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs 16,500
    Net Profits

    To calculate the ‘Indirect Costs’ find the relevant percentages of the Total Indirect Costs.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900

    To calculate the ‘Net Profits’, subtract the ‘Indirect costs’ from the ‘Gross Profits’.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900 37,000 (70,000) (64,500)
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900 37,000 (70,000) (64,500)

    Add the ‘Net Profits.

    Total Net Profits = $62,400


    Deleting QO
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900 37,000 (70,000) (64,500)

    Remove the ‘Expected Sales (units) for QO and then make the adjustments.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000

    Revenue 360,000 200,000 180,000


    Discounts 3,600 10,000 9,000
    Net Revenue 356,400 190,000 171,000
    Direct Labour 90,000 60,000 90,000
    Direct Materials 60,000 40,000 90,000
    Direct Overhead 30,000 20,000 22,500
    Total Direct Costs 180,000 120,000 202,500
    Gross Profits 176,400 70,000 (31,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900 37,000 (70,000) (22,000)
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000


    Discounts 3,600 10,000 9,000
    Net Revenue 356,400 190,000 171,000
    Direct Labour 90,000 60,000 90,000
    Direct Materials 60,000 40,000 90,000
    Direct Overhead 30,000 20,000 22,500
    Total Direct Costs 180,000 120,000 202,500
    Gross Profits 176,400 70,000 (31,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900 37,000 (70,000) (22,000)

    Add the ‘Net Profits’.

    Total Net Profits = $104,900


    Deleting PO
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 45,000 50,000

    Revenue 360,000 200,000 180,000 350,000


    Discounts 3,600 10,000 9,000 17,500
    Net Revenue 356,400 190,000 171,000 332,500
    Direct Labour 90,000 60,000 90,000 200,000
    Direct Materials 60,000 40,000 90,000 100,000
    Direct Overhead 30,000 20,000 22,500 75,000
    Total Direct Costs 180,000 120,000 202,500 375,000
    Gross Profits 176,400 70,000 (31,500) (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900 37,000 (70,000) (64,500)

    Remove the ‘Expected Sales (units) for PO and then make the adjustments.
    MO NO PO QO
    Expected Sales (units) 60,000 40,000 50,000

    Revenue 360,000 200,000 350,000


    Discounts 3,600 10,000 17,500
    Net Revenue 356,400 190,000 332,500
    Direct Labour 90,000 60,000 200,000
    Direct Materials 60,000 40,000 100,000
    Direct Overhead 30,000 20,000 75,000
    Total Direct Costs 180,000 120,000 375,000
    Gross Profits 176,400 70,000 (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 159,900 37,000 (38,500) (64,500)

    Next, Adjust the ‘Expected Sales (units)’ for PO by 35% less.


    MO NO PO QO
    Expected Sales (units) 39,000 40,000 50,000

    Revenue 200,000 350,000


    Discounts 10,000 17,500
    Net Revenue 190,000 332,500
    Direct Labour 60,000 200,000
    Direct Materials 40,000 100,000
    Direct Overhead 20,000 75,000
    Total Direct Costs 120,000 375,000
    Gross Profits 70,000 (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 37,000 (38,500) (64,500)

    Now make the adjustments.


    MO NO PO QO
    Expected Sales (units) 39,000 40,000 45,000 50,000

    Revenue 234,000 200,000 350,000


    Discounts 2,340 10,000 17,500
    Net Revenue 231,660 190,000 332,500
    Direct Labour 58,500 60,000 200,000
    Direct Materials 39,000 40,000 100,000
    Direct Overhead 19,500 20,000 75,000
    Total Direct Costs 117,000 120,000 375,000
    Gross Profits 115,160 70,000 (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 98,160 37,000 (38,50) (64,500)
    MO NO PO QO
    Expected Sales (units) 39,000 40,000 45,000 50,000

    Revenue 234,000 200,000 350,000


    Discounts 2,340 10,000 17,500
    Net Revenue 231,660 190,000 332,500
    Direct Labour 58,500 60,000 200,000
    Direct Materials 39,000 40,000 100,000
    Direct Overhead 19,500 20,000 75,000
    Total Direct Costs 117,000 120,000 375,000
    Gross Profits 115,160 70,000 (42,500)
    Indirect Costs 16,500 33,000 38,500 22,000
    Net Profits 98,160 37,000 (38,500) (64,500)

    Total Net Profits = $32,160


    Analysis
    • Delete QO because net profits increased
    • Keep PO because net profits declined

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