Week 11 Tutorial PDF

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Week 11 Tutorial...

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Tutorial: Chapter 8 - Cases 2, 6 and 10 Case 2 Selling price=150 per 100 pies A i) Sales 1.50 VC= 30+10+5+15=60 pies Unit contribution margin 150-60=90 Percentage = 90/150x1000=60% ii) break even point Fixed costs/ UCM Rental + Deprecation = 2000+4000=6000 6000/90=6667 Pies iii) Margin Safety 7500 % Sales units - Break even units/ sales units x100 7500-6667/7500x100=11.11% iv) Operating Total contribution =7500x UCM 0.90= 6750 Less fixed costs 6000 (rent and deprecation) Operating profit 6750-6000=750 B. CVP chart C.

No, because the operating profit is lower compared to the old one. But the pies were higher with the number of pies and if the pies were over 10000 then it could change. Case 6 A) Total Revenue = 80x350x20=560,000 Variable costs=10x350x20=(70,000) Contribution margin =560,000-70,000=490,000 Fixed costs= (280,000) Operating income for full year = 210,000 B) 560,000x50%=280,000 Variable costs 70,000x50%=35000 Contribution margin= 280,0000-35000=245,000 Fixed costs= (280000) Operating cost 245000-280000= (35000) C) Break even Nights = Fixed costs/Units contribution margin 280,000/80-10=4000 The full rooms were 70,00 nights sold due to variable cost of 350x20=7000 Breakeven total is 4000/7000x100=57.14% D) 280,000/80+30-10=2800 total nights Breakeven rate of occupancy 2800/7000x100=40% E) 60% there are 12 rooms. So if someone arrives late the room would be $10 less compared to the previous night.

(50-10=40) The income has increased overall, by 40% due to someone coming late. Case 10 A) Breakeven750,00 fixed overhead Unit sold each year 30 20= 30,000+150,000+120,000=300,000/150,00=20 per unit 30-20=10 750000/10=7500 units 7500x30=225000 breakeven units. B) 15000-7500/15000x100=50% C) Operating profits sales Fixed costs+profit overall/Unit contribution margin 75000+90000=165000/10=16500 units D) Breakeven company sprinklers Materials $5 Variable costs update = 20+5=25 Fixed cost = 5000 overhead depreciation per year Fixed cost 75000+5000 deprecation =$80,000 Breakeven update units =(30 old variable - 25 new variable) =5 units =fixed costs 80000/5 units =16,000 units E) Operating profit previous year Overall cost total 375,000 Fixed overhead operating costs = 75000 Sales = Fixed costs profit

Units contribute margin $80,000+750,00=155000 30-25=5 155,000/5=31,000 units F) 30-20=10/30 per price =33.33% 25/30x100=66.67% Selling price 37.50 per unit G) Sprinklers improved operating profit new Sales 20,000x37.50=750,000 Variable cost = 20,000x25=50,000 Fixed overhead 80,000 Cost overall $580,000 Operating profit 750,000-580000=170,000...