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DM

DL
FO
SE
ADMIN
TVC
1)

60
30
36
18
3
147 TFC
SP - COST

54
12
12
78
187.5

937500

2)

UNITS

TC
SP
Profit

1000
60000
30000
36000
0
3000
129000
225000
96000

3)

136.5

4) a:

4)
SALES
COGS
CONT. MARGIN
DELIVERY AND ORDERING COST
RENT(PER SQR FT.)
ALLOCATED CORPORATE COSTS
CORPORATE PROFIT

CHOCOLATE CANDY
FUDGE
40000
25000
35000
26000
15000
19000
14000
10000
16000
2000
3000
2000
3000
3000
2000
5000
5000
5000
4000
-1000
7000

TOTAL
100000
60000
40000
7000
8000
15000
10000

CHOCOLATE FUDGE
TOTAL
40000
35000
75000
26000
19000
45000
14000
16000
30000
2000
2000
4000
3000
2000
5000
7500
7500
15000
1500
4500
6000

DIVISION OF ALLOCATED COST EQUALLY


2500
2500

CANDY
FUDGE
TOTAL
25000
35000
60000
15000
19000
34000
10000
16000
26000
3000
2000
5000
3000
2000
5000
7500
7500
15000
-3500
4500
1000

DIVISION OF ALLOCATED COST EQUALLY


2500
2500

UNITS
SP

200

DM
DL
VC
FC

15
40
10
35

TOTAL

4000
800000
60000
160000 COST
40000
140000 FC
LEASE
400000

100
PROFIT

400000

BUY
800000

320000
140000
-50000
410000
390000

THEREFORE, MAX PRIC

DIFFERENCE

80
35
-12.5
102.5
10000

THEREFORE, MAX PRICE

77.5

2.5

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