students

50
40
fees
4520
5320
TR
226000
212800
VC
480
1040
TVC
24000
41600
contributio 202000
171200
pfc
130000
118000
contributio
72000
53200
afc
42675
51210
surplus
29325
1990
contri/unit
4040
4280
tfc
172675
169210
Break Even 42.74134 39.535047
exhibit 1
Assumptions
1) Fixed Costs remain constant

25
115
5970 5113.478
149250
588050
896 765.2174
22400
88000
126850
500050
80000
328000
46850
172050
76815
170700
-29965
1350
5074
156815
30.9056

students
fees
TR
VC
TVC
contributio
pfc
contributio
afc
surplus
TFC
contributio
Breakeven

50
5021.72
251086
498
24900
226186
130000
96186
42675
53511
172675
4523.72
38.1710185423

50
5910.52
295526
1079
53950
241576
140000
101576
51210
50366
191210
4831.52
39.575537305

40
6632.67
265306.8
929.6
37184
228122.8
105000
123122.8
76815
46307.8
181815
5703.07
31.8801978583

140
5799.42
811918.8
828.8142857143
116034
695884.8
375000
320884.8
170700
150184.8
545700
4970.6057142857
109.785412758

Capacity
SP per buck
TR
VC per buck
contri per unit
fixed cost
breakeven
breakeven sales
contri
profit
profit per bucket

2000
70
140000
20
50
50000
1000
70000
100000
50000
25

Capacity
SP per buck
TR
VC per buck
contri per unit
fixed cost
breakeven
breakeven sales
contri
profit
profit per bucket

2600
70
182000
20
50
52000
1040
72800
130000
78000
30

Budgeted sales in units

expected sales price
actual budgeted sales
VC per unit
variable costs
contribution
fixed costs
net income
contribution per unit
breakeven
MOS
MOS %

50000
90000
30000
7
4
13
350000
360000
390000
4
1.5
9
200000
135000
270000
150000
225000
120000
120000
210000
104000
30000
15000
16000
3
2.5
4
40000
84000
26000
0.2 0.066667 0.133333
20 6.666667 13.33333

margin of safety as a %
revised income statements for each product assuming a 20% increase in
for each product determine the percentage change in net income that re

Budgeted sales in units

expected sales price
actual budgeted sales
VC per unit
variable costs
contribution
fixed costs
net income
pre net income
% change
contribution per unit
breakeven
MOS
MOS %
Operating leverage

Skin CreamBath
60000
108000
36000
7
4
13
420000
432000
468000
4
1.5
9
240000
162000
324000
180000
270000
144000
120000
210000
104000
60000
60000
40000
30000
15000
16000
1
3
1.5
3
2.5
4
40000
84000
26000
0.333333 0.222222 0.277778
33.33333 22.22222 27.77778
3
4.5
3.6

assuming a 20% increase in sales

hange in net income that results from 20% increase in sales, which product has the highest operating leverage

hest operating leverage

Budgeted Number
Sales
VC
contri mar
fixed cost
net income

Per unit
Budgeted Amount
160
500
80000
160
320
51200
160
180
28800
12000
16800

sales mix
weighted a
breakeven

20
132
500

640
640
640

80

Budgeted Number
Per unit
Budgeted Amount
Sales
100
500
50000
VC
100
320
32000
contri mar
100
180
18000
fixed cost
12000
net income
6000

400
400
400

sales mix = units

450
330
120

288000
211200
76800
54000
22800

450
330
120

180000
132000
48000
54000
-6000

capacity is 5000 but produces only 2000

material
wages
factory overheads
admin overheads
Selling

Material per unit

wages per unit

40000
36000
12000 fixed
20000 variable
18000 fixed
10000 fixed
16000 variable
152000

20
18

Selling pric2000*80
additional 3000*65

sales
VC
contri
fixed cost
profit

40000
20000
16000
36000

160000
112000
48000
40000
8000

355000
280000
75000
40000
35000

20
10
8
18

100000
50000
40000
90000
280000

195000

160000