Scribd
Upload
40 views6 pages

Ben1 U110029

The document analyzes sales, costs, and profits for knives and can openers. It provides data on manufacturing costs, marketing costs, sales, and profits for 1999. Charts show the effect of price changes and advertising expenses on product volumes.

Uploaded by

Mayank Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
40 views6 pages

Ben1 U110029

The document analyzes sales, costs, and profits for knives and can openers. It provides data on manufacturing costs, marketing costs, sales, and profits for 1999. Charts show the effect of price changes and advertising expenses on product volumes.

Uploaded by

Mayank Sharma
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 6

1999

Sales (400000 each) 10000 Price Se


Manufacturing Cost 5600 Can Openers
Gross Margin 4400 Price
Marketing Cost 2700 13
General Admin Cost 500 14
Advertising Cost 100 15
PBT 1100 16
Taxes (50%) 550 17
PAT 550

Cost Analysis
Variable Costs Knives ($/unit) Can Openers ($/unit) Advertisin
Selling Price 10 15 Knives
Variable Manu Cost X
<500000 4 7 50000
>500000 5 8.75 60000
Variable Mkt Costs 1 2 70000
Fixed Costs 80000
Manu Costs 1000000 90000
Mkting Costs 1500000 100000
General Admin 300000 "+2% of sales" 110000
Budgeted Costs 120000
Advertising 100000 130000
140000
150000
160000
170000
180000
190000
200000
210000
220000
230000
240000
250000
260000
270000
280000
290000
300000
310000
320000
330000
340000
Price Sensitivity
Can Openers Knives
Change in Volume Price Change In Volume
150000 7 125000
100000 8 100000
0 9 50000
-75000 10 0
-100000 11 -40000
12 -80000

Advertising Expenses
Knives Can Openers
Y X Y
0 50000 0
2000 60000 4000
3000 70000 7000
4000 80000 10000
5500 90000 13000
7000 100000 17000
8500 110000 20000
11000 120000 24000
13500 130000 28000
16000 140000 32000
18500 150000 36000
22000 160000 41000
26000 170000 46000
32000 180000 50000
36000 190000 54000
42000 200000 58000
44000 210000 58000
46000 220000 58000
48000 230000 58000
50000 240000 58000
52000 250000 58000
54000 260000 58000
56000 270000 58000
58000 280000 58000
60000 290000 58000
58000
58000
58000
58000
58000
Input Variable to Input Variable
be defined to be defined
↓ ↓

Additional Units Change In


Advertisement Due to Volume Due to
PRODUCT 1999 Sales Expenses Advertisement Price Price

Knives 400000 90000 5500 11 -40000

Can Openers 400000 100000 17000 14 100000

Knives Can Openers Total (Fixed +


Variable Variable variable)
Sales 4020500 7238000 11258500
Manufacturing Cost 1462000 3648750 6110750
Gross Margin 2558500 3589250 5147750
Marketing Cost 365500 1034000 2899500
General Admin Cost 2551700
Advertising Cost 90000 100000 190000
PBT 2103000 2455250 4558250
Taxes (50%) 1051500 1227625 2279125
PAT 1051500 1227625 2279125
Variable Variable
Total Manufacturing Marketing
Volume Sales costs Cost

365500 4020500 1462000 365500

517000 7238000 3648750 1034000

You might also like