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Assignment_ MA

The document contains financial data and calculations for various models and scenarios, including break-even analysis, contribution margins, and profitability for different products and services. It details sales, variable costs, fixed costs, and profit calculations for multiple models, as well as a mini case study on hospital bed utilization and capacity. Key metrics such as break-even quantity, margin of safety, and net profit or loss are provided for analysis.

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autodiddact
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7 views

Assignment_ MA

The document contains financial data and calculations for various models and scenarios, including break-even analysis, contribution margins, and profitability for different products and services. It details sales, variable costs, fixed costs, and profit calculations for multiple models, as well as a mini case study on hospital bed utilization and capacity. Key metrics such as break-even quantity, margin of safety, and net profit or loss are provided for analysis.

Uploaded by

autodiddact
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Q.

SP 25
VC 19.8
CONTRIBUTION 5.2
FC 702000
i) Break even QTY 135000
ii) Break even sales 3375000 3375000
Contribution margin 21%
Q.3 210000
Q.4 Margin of safety 5000 125000
Q.5 VC 20.2
Contribution 4.8
Break even QTY 146250
Q.6 SP 25.50505051

Q.2

Model A Model B

Selling Price per Unit 32 32


Commission Rate 0.05
Net Selling Price per Unit 32 30.4
Variable Cost per Unit (Model A)
Fixed Cost (Model A)
Variable Cost per Unit (Model B) 6.4
Fixed Cost (Model B) 2227200
Additional Machine Cost for Model B 900000
Depreciation for Additional Machine 180000
Target Income for Model B 1912800
Sales and Production Average Units 184000

i) Break-even Units for Model A 88000


ii) Profit for Model A at 184,000 units 2150400 B's More
Profitable
Profit for Model B at 184,000 units 2188800
iii) Units Required for Model B to Earn $1,912,800 180000
Indifference Point (Units) 160000

Q.3
Hedge Line Leaf
Clipper Trimmer Blower
Sales 50000 50000 100000
SP 84 108 144
VMC 39 36 75
VSC 15 12 18

i) Sales 24000000
TVC 14400000
Contribution 9600000 Note
TFC 7800000 TVC Total Variable Cost
PBT 1800000 TFC Total Fixed Cost
Taxes 720000
PAT 1080000

ii) WASP 120 WASP


WACP 72 56.25 15.75 WACP
CONTRIBUTION 48
Break even qty 162500
40625 40625 81250

iii) SP 84 108 144 VMC Variable Manuf. Cost


VMC 39 36 90 VSC Variable Selling Cost
VSC 15 15 18
TVC 54 51 108
Selling
Proportion 1 1 3

WASP 124.8
WACP 85.8
CONTRIBUTION 39
BEQ 200000 BEQ Break-even Quantity
40000 40000 120000

Mini Case

Revenue 7200000
SP 360 per day
No of patient days 20000

Total VC 2400000
VC per day 120

Total Fixed costs

Number Salary Cost


Supervising nurses 4 30000 120000
Nurses 10 24000 240000
Aides 20 10800 216000
Beds Cost 3480000
Total Fixed costs 4056000

Break even beds 16900


Max capacity 21900
Capacity
Utilisation 77.17%

Part (b) Increased capacity of beds 20


Total patient days 29200
If we can hire bed on monthly
basis
Additional
revenue 648000 648000
Additional VC 216000 216000
Contribution 432000 432000
Additional FC 1160000 290000
Net profit or loss -728000 142000

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