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  • AFM Assignment CVP

    Enviado por

    Rakesh Skai
    12 visualizações3 páginas
    CVP CASE ANALYSIS

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    CVP CASE ANALYSIS

    Direitos autorais:

    © All Rights Reserved
    Baixe no formato XLSX, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    12 visualizações3 páginas

    AFM Assignment CVP

    Enviado por

    Rakesh Skai
    CVP CASE ANALYSIS

    Direitos autorais:

    © All Rights Reserved
    Baixe no formato XLSX, PDF, TXT ou leia online no Scribd
    Sinalizar o conteúdo como inadequado
    de 3

    Question 1

    The following assumptions are implicit in Bill French's determination,


    1. Fixed cost remains constant irrespective of level of operations
    2. Variable cost per unit remains constant
    3. All the costs can be segregated into fixed and variable costs
    4. He assumes that there is only one Break Even Point

    Question 2a

    Sales at Full Capacity (Units)


    Actual Sales Volume (Units)
    Unit Sales Price
    Total Sales Revenue
    Variable Cost per Unit
    Total Variable Cost
    Fixed Cost
    Contribution
    Profits
    Contribution per Unit
    BEP Units
    BEP

    Aggregate
    A
    2000000
    1750000
    400000
    6.948
    10
    12160000
    4000000
    3.72
    8.25
    6517500
    3300000
    3690000
    960000
    5642500
    700000
    1952500
    -260000
    3.228
    1.75
    1143122.67658 548571.4286
    7942416.35688 5485714.29

    B
    400000
    9
    3600000
    4.125
    1650000
    1560000
    1950000
    390000
    4.875
    320000
    2880000

    C
    950000
    4.8
    4560000
    1.65
    1567500
    1170000
    2992500
    1822500
    3.15
    371428.5714
    1782857.14

    Question 2
    2b

    Minimum Retained Earnings


    Required Dividend
    Profit After Tax
    Profit Before Tax
    Fixed Cost
    Required Contribution
    Contribution per unit
    Profit Volume Ratio
    Break Even Points in Units
    Sales at Desired Profits

    2c
    2d
    150000
    150000
    150000
    450000
    300000
    450000
    600000
    450000
    600000
    1200000
    900000
    1200000
    3690000
    3690000
    3690000
    4890000
    4590000
    4890000
    3.56
    3.22
    3.22
    0.51
    0.46
    0.46
    1373595.51 1425465.838509 1518633.5403727
    9588235.2941177 9906987.57764 10630434.782609

    2b

    2c

    2d

    PVR= SP-VC/SP
    PVR=6.95-3.39/6.95
    0.51

    PVR= SP-VC/SP
    PVR=6.95-3.73/6.95
    0.46

    PVR= SP-VC/SP
    PVR=6.95-3.73/6.95
    0.46

    Question 4
    BEP=
    BEP=

    A
    B
    C
    960000/10-7.5+1560000/9-3.75+450000/2.4-1.5
    384000+297142+500000
    1181142

    Aggregate

    1110000

    To Get the same BEP on Aggregate and individual product line, we should divide the fixed cost in
    the ratio of individual sales(6:4:5), contribution per unit should be taken from the aggregate i.e.,
    7.2-4.5 = 2.7
    A
    B
    C
    2970000*6/15
    2970000*4/15
    2970000*5/15
    BEP=
    1188000/2.7+792000/2.7+990000/2.7
    BEP=
    1100000

    Aggregate
    440000 293333.3 366666.7
    1110000

    Group 11
    Rakesh S K
    Rohit Gundla
    Dinesh Kumar Reddy
    Krishna Chaitanya Yadav

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