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CVP Analysis For Report

The document shows sales, costs, and profitability data for two product mixes, A and B. It calculates figures such as unit sales, revenue, costs, contribution margin, profit, and return on investment. It then determines the mix needed to break even or reach a $500,000 profit target. The optimal mix is found to be 60% A and 40% B units to maximize profitability.

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Tân Nguyên
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41 views5 pages

CVP Analysis For Report

The document shows sales, costs, and profitability data for two product mixes, A and B. It calculates figures such as unit sales, revenue, costs, contribution margin, profit, and return on investment. It then determines the mix needed to break even or reach a $500,000 profit target. The optimal mix is found to be 60% A and 40% B units to maximize profitability.

Uploaded by

Tân Nguyên
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A B

Sales volume (units) 50 5 10 1

Selling price ($/unit) 10 40


Variable cost per unit ($/unit) (3) (30)
Contribution per unit 7 10
C/S ratio 0.7 0.25
Sales revenue 500 56% 400 44%
Variable expenses (150) (300)
Contribution margin 350 100
Total fixed expenses (142) (28)
Net operating income 208 72
Income tax (20%*280)
Income after tax
Investment
Rate of return =224/2000

Sales units of mix to be break-even Mix (5:1)


Sales dollars of mix to be break-even Mix (56%:44%)
Sales units of mix to reach target profit of $500 Mix (5:1)
Sales dollars of mix to reach target profit of $500 Mix (56%:44%)
Mix (Average)
60

15 weight average selling price (10*5+40*1)/(5+1)


$ (7.50) weigtht average variable (3*15+30*1)/(5+1)
7.5 weight average contribution (7*5+10)/(5+1)
0.50 Weight average c/s ratio (0.7*56% + 0.25*44%)/(56%+44%)
900
(450)
450
(170)
280
(56)
224 Cái này là cô tự thêm để cho hiểu cái sheet 2
2,000
11%

Mix (Average) A B
22.67 19 4 units
340.00 190.40 149.60 dollars
89.33 74 15 units
1340.00 750.40 589.60 dollars
A
C/S ratio 0.85
Sales revenue 75%
Variable expenses Nhân chéo chia ngang
Contribution margin
Total fixed expenses Given
Net operating income Nhân chéo chia ngang
Income tax (25%*800,000)
Income after tax 20% * 3,000,000
Investment Given
Rate of return Given

Target = (investment * RR) / (1-tax rate) (3,000,000*20%) / (75%) = 800,000

Mix (Average)
Sales dollars of mix to be break-even Mix (75%:25%) 967,741.94
Sales dollars of mix to reach target profit of $800,000 Mix (75%:25%) 2,000,000.00
B Mix (Average)
0.55 0.78 =0.85*75%+0.55*25%
Nếu sale là 100% 25% 1,987,179 =437,179/22%
100%-78%=22% (437,179) =(1,550,000*22%)/78%
thì CM sẽ là 78% do CM là 0.78 1,550,000
(750,000)
Trước thuế là 100% 800,000 =(100%*200,000)/25%
Mà thuế là 25% (given) 200,000 =(600,000*25%)/75%
Sau thuế sẽ còn 75% 600,000
3,000,000
20%

A B
725,806.45 241,935.48 dollars
1,500,000.00 500,000.00 dollars

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