Cvp
4
Selling Price Variable Manufacturing Cost per unit Fixed Manufacturing Cost per unit Variable Marketing and Distribution cost per unit Fixed Marketing and Distribution Cost per unit Total Cost per unit Operating Income per unit Production rate per day No of working days Capacity for each plant Capacity plan for Delhi Plant Capacity plan for Orissa Plant Contribution Margin/unit for Orissa Plant Contribution Margin/unit for Delhi Plant Total Fixed Costs for Orissa Plant Total Fixed Costs for Delhi Plant Breakeven units Breakeven units for Orissa Plant Breakeven units for Delhi Plant Calculate Operating Income to produce 96000 Normal Capacity plan at Orissa Plant Normal Capacity plan at Delhi Plant Reduced Contribution Margin of 4000 Rs per unit for 19200 Contribution Margin /plant Orissa Plant Delhi Plant Delhi Plant Total Contribution Margin Less Fixed Costs If no of working days exceed 240,extra variable cost incurred in Orissa If no of working days exceed 240,extra variable cost incurred in Delhi
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Transcript of Cvp
OrissaSelling PriceVariable Manufacturing Cost per unit 7200Fixed Manufacturing Cost per unit 3000Variable Marketing and Distribution cost per unit 1400Fixed Marketing and Distribution Cost per unit 1900Total Cost per unitOperating Income per unitProduction rate per day 400
No of working days 240
If no of working days exceed 240,extra variable cost incurred in Orissa 300 Rs/unit
If no of working days exceed 240,extra variable cost incurred in Delhi 800 Rs/unitCapacity for each plant 300
Capacity plan for Delhi Plant 96000Capacity plan for Orissa Plant 96000
Contribution Margin/unit for Orissa Plant 6400Contribution Margin/unit for Delhi Plant 4800
Total Fixed Costs for Orissa Plant 470400000Total Fixed Costs for Delhi Plant 226560000
Breakeven unitsBreakeven units for Orissa Plant 73500Breakeven units for Delhi Plant 47200
Calculate Operating Income to produce 96000 units
Normal Capacity plan at Orissa Plant 96000Normal Capacity plan at Delhi Plant 76800
19200Reduced Contribution Margin of 4000 Rs per unit for 19200 units
Contribution Margin /plantOrissa Plant 614400000Delhi Plant 368640000Delhi Plant 76800000Total Contribution Margin 1059840000Less Fixed Costs 696960000
Determine how the production of 192000 units be allocated between Orissa & Delhi
Full Capacity of Orissa Plant 120000Orissa Plant 614400000Orissa Plant 146400000Delhi Plant 345600000Total Contribution Margin 1106400000Less Fixed Costs 696960000Operating Income 409440000
Orissa Delhi15000 15000
8800150014001450
13500 131501500 1850
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