Quaakrabve Techni qpes Cost Behaviour & Regoussion Anasysis j 1 cost on machine hos “Fnom o poetinin ase aie of of He total fixe and veuabl costs of ox eran faction a | epastoment tn felation ty the machine howis, a accountmt | hag Summarised thet He OY subared to He machine hours: ae k 3. Can He dinived petanew be overheads for a war econ raat erhead costs ean be tinaanty cmp to establish tS, pudation on & gpantiakve basis £ use ie for peje thy accountant hes compiled he fouswing date of (i. mronthly operokey costg over the past L gro 2. Comp Ute oe gutob le moasuste to Ssess +e g a scakton ding rcme Months mic hs Tora Sverkend —T " pee) Cost} a) Ton 280 Fee 2 2Aod Mar 2 320 Ape 2a 220 mag 24 340 Tun 26 240 Tur et 2Ao Aug 20 250 Sep 2\ 250 ok 1 30 Nov 14 Wea Dee 30 230 i 1, Fina He best P+ Linen yutations tip of vote ! Of the assumed relation £ assess the validity . sect te eelict thee eg 110 machiatno 2Ko utes using 450 mackie ne 1 Tustify peak me oth op. 208) A. Poudice He to For overhead fom the next monty when He mann ing Load 1s syatent te SIO ns “ focroig ogy _ ond place & AS conf dance jatuwel on Hus esh mate. js. Give the signifi cone of te vols Of pis constarts accountant! = et colina: ~ ‘ . os eixed Ov Foe & bin the Magness! on gulaber. 4 2 vantablt ovethenk yee encarta . . @) mt is hy poressizee hak the vasdable ove nds -ab ish +8 y\ No @s 100 [rooe pa. Can this hy potusis be sustain ag fio 82 ah = ed frie basis of TH pbove Sampie fF test ar Sfo wvr? an oe | Bok! Passe \ Bu = 2 “R= WADE, Zy = 3370 a= 290:89 -(.08°) ex = F244 ne ib i zy” = 467560 405428 | emg 7 22,640 (Say a any - neg = (aes \onx = Sabone = 192-25 = rag? = aL ‘Syy > 29° 240 ‘ps -4F L.{ y?? a6 rte L= 20-96 Best Fit Une 1. (Guy) 2 wre Cup" 5 Gas = ones et La vp of poe Ga) ya) 142-25 KU,0AD 6 Fo of wadonon in total overlad cost con be 7 onsese atte Go abutad fo machine We ne vo . = BB-AC+ AAAS! ~ = 348-03 (ve bre) sack #? * moobine WS 4 roe —— hay ye ~ bhuse te denived getablow- atone Ser yr 2 Sy ~bény a-2h = (4.0238 “ob -Stanshe CX = Confidence Lave Zarit plesowarm _ ne Denes of frre o' 2-228 - 24-7 \" egos: - oF 09 414 0293% (1+ iets ce) 7aa-2e ee St = a5-096L Me 2248 AS ‘lo ef Conf chen ce Trey oe fox yeo= “a y * ever mangir (240-00228-0061 798 203 “a: ab+ee6t) (212-1324, 333-4 2c) =7 ASfo of He Gre vo bene machine bns- are BIO, ov erheods wilt ie Leto eww 317-1934 and 383-4264. Most optimiske =? BI2133% most pessiotshe => 383-4264 6 ‘| } Reg rensiew coefficien® =bFoctone contwibusi ng wing curs! | EGgGi deny Lempaoves — Yew processes 2 impooved mathoks — Product ser dasiqn: im 7 ratamabie mada — aeowy es , , Repertve powers Seen) [xt tages al OF Dineck labour tors for tee tstaatt u Total bopour Wns on barely 2 . he 18 pr ¥ units em x Z Cumuafve a0 af ots prodwee | L(x) = ¥¥ Ru ids “ _b Be Constane cauled index of eanelg q = X.a% nae 0fb&!] ; -[-¢)) Cannot be Dont. *) Bol) or? Margins Leboor (x) = Lb sa(iee” = = (1-8) 19,08. 2oul Leaning Gunve effec = P pr0-4 =z whenever He ne of units mannfoct wok ws wet , dovbed, Labour be] Socomes p Himes te eet Lobow in p & im (ot unit. |2 [ wt Hae shen Example % pe ©-A0 Bia has Jouu P*B ass = P% Your” ab = 0-Ax (20> 108 pax toe = AFD a7 Ox x, toe boty Y= Bnet botely (Donwie Se PS ee -b yas ot vg ye gee i { —4b ade” go ‘gs produce i of tannalg uw Gol | | 1 on is i be Loewe by dog jo~ Mages = CO” Ha") ce ay Ca) 8 OD ap uy (ef) ge ad —btog Me = eg P % 2, 2b 2fe Pr) ‘ tay? P b 0-45 0-074 6-90 ONG2D 08s 60-2945 #6 6-S214 0 A15O oFProb! , Suppose on aarve poe Compare has beew preerny ea quence system 2 vtec Knows shake the VOTE anbouwr he [ont fomors © waseiey cae. Te-Lore, fa hes \ e 60,000 sineck Labour Wns - Fo has. wore neqcrec THe | Lick to parodnce too atditiont | mg te increment dO oF 28,500 clint Lnbowe Comp any Ve evaluating o- unis 2 is latoupted le know! bobouse bn. sugpined for tts oodde - L Age) = 2252? L (Xs) = 60,900 i 540= (50) ea = 28,500 _ SHOMmS a ; dx” ee * bog (520) * Yigg ® | = 60,000 , 400 Ws - goo = _ fi 22022 =n -b a= 2004 Yor oO Ke ; Be hay"? 4 Nadi toned 100 wets, eps af De gun) 7 2.002% (25%) 400 = 28,507 15D) as °) ° = beg 2004 - 0:922lq? pe 4g BB. vane “Te dj uv beg se) & 340 ° L (Han) = 842% 25? b= ~ CB ) = 85, 0% . . 2 .pyoee Additonal lobes “. -ugp> *F'8 P mo. 25,070 oe artes re pempensy i gad* RTOS eee ‘ hee casting a Ares nig o taney nate of BO'L, the average “> aque of Labour Wo | unit reducers by 22% a8 te ty anne “of long te let er sugpies 100 brs, how many total has . FT a tw quspired. +0 produce 200 units. i i We OD How mary aditionat toe cow sageinad Sore additions too units 7 7 3 bre on oe ® suppose tee five hae He opportunity f 200 +0 Sur connect that with maise 4S totek ouxpuk [rene eo units» how many Laboue We. wih be deqpined « : 3 ln = 100_L L bs 0 Leetecs— Cea bro J uit © = 7” @ sereem Fow wet 100 bre} unit = 0-8 = KO-B= 160 + gD @—100 36 » L Kae) = 27° r , pee se 27 ba ee 5 oy set , 20324 100 te, @- were (s00) poner Gd ey ea az 4408S og O22Iy Ate - ws en / Yoo = *4295% (s00) = 0 S456 40K 250 sicuscane = ents 5, 06° L(x 500) = Ae LRonak Labewr Additonal sabour hw we 200- S00 = Uke) Khon re el = 247.g3- 160 =) SBSS yp 7p ene emnenesnrmn ~y asin j© TR(K)e ek 48K Cost-Volume Profit Anatysis Single Pro duck Liners Revenue / Cost x . Muipe Product Non Macan mene {9a x D¥.OV BOLL Csctainit y Revenue for Unerteanty, Mode hb — Sing Pow deck — Linear Revene/ ost Fe (p-*) Xcere) = F © Tange roa (ate) = 0) %a x= (e+e) (oneqton) ; Mae f+ eC] (poer-toe) uy) Medel 2 - Sig Pre duck ——— none tinea, Seve [cast 2 CAeveue) ) = atone axt+ax® (cost) Te (« te (x) Tex) Fos break- avery op hou pre Fr mw => Margin MR wig) = 2f9C)] = n+ 25% me(x) = bt 2ex+3dx™ Mc at Rexam > Marginal Cost1F.09%. 20. A201L My 3 am MuLtipte Procticce — Une Revenue / Cost als . ~ ~ mutated Profit r= 2x (%-%)~ Ze: cortaanty fry“ +b ry Vetame fle vole Fixed ost 4 Moet 4 Listic ModeR | Zing a Product — Probab 1 Assume thet tHe soteo Vo kane ,Sebling potety vosiable cost ' £ fred cot of a product oe vescable 2S POT nosemet | fisted button With Porameros J jass umd tat tht dist. butions Maan (m) Standord Deviaten (5) wen below ¢ Tt is also ose indepen | F late Sy se. (4s [usie) Po He oe bNec. : | (Ae/unie) ¥ te o~ FAC. F Ke oe avg. thes v4) Hey (-”) + ver)+ a) 2 gore} +v(x) ore) = Hay VO) Ty, +v(F) Verisnee (2) = Mpa Cost Prod a 7 a Lu the | Company wishks 40 Launch oO new pee fee ke a cost V & list yean sales X, unit gseth see p, vat vard abi 4 y gsettig emcee Po Managers concorde Pxodk cast F ase not known with coctodnty + hove provided Pouowing information:ai Mean s.D ' Sotes * ny F000 Hx) 3,200 (+) | lose. & /unit (¢) ae 6S o(?) 2 vc, wefest (v) M82 9 F.C. RE Lawto (F ) Me BI oe)? Stn t Rs take TI 10-72 | | Aw the above can be assumed fo be nonmauy Aigtrl buted i £ inclependent of one another. \ e (@) Find the expected poepige © SD. of profite volume 1 ™ | (2) Find the probabil uty tet He prednce wit oweoe =| OP even Inthe (sty core i (C) Fine the probariny Hot the profit we heme fom tee Ist year with be ok deagt RS A Loehs ~ DG) Find the probati diy thet te profit volene wibe be | below Rs 1B Lakhs. i Ane & . |) Spent pregit Volumes My = (65-32) » 39,002 - 8,105,000 le) i = Rs 15,00,000 1. i = iy 2 , 4 | - B2) f% (3,200 10,00. 12 NO Keailes Fh ered Coed’ (ae) + (3,200) fate} + (4 80,000) (A = Gere \ 4 ps Jira gas x 10% = 10,7200 |To finde oy (rr) pen (see tla, re 1072 Ute) uv Nopmal Disteibuow Grandand Nosmat Disteibube~ alot atel Zon) | erated otama. | Nevomavendate sa oan PCE SE) is pune Petre) r (2s .gaa2) = OS + OAD = o-4tae me wi be | os | F esaa >, DOO 0° » pleys twee) Basis 7 YD P (2vpr 26) ey] Ge) \ 1 = 0-St0-2405 = 09495 by pee dan) i o-28 Tofre p (z < 2749) i OO AAA OIA rosy Outs OFCyoe Meds 2 ~ Bimensnr inn Simutare the man Keng situation fom 20 cases J rine cleriive the expected Paofit volume, te pre baritiny of Brenig oxen 2 the probabi ity of corning pl prep vote 4. 66 26,000 1933 42 34 not tas ther RS S Lakhs. Also calouwate fhe prwoabitiry of . soonivg ak most Rs (2 Lakhs . Sales offtoke Setting Price Neaiabke Coot | Care Cee cr. pa Sfuit foe of anksfust Lar eren 24,000 pS 62 WU 32 — 0-BS 035 DHS eagem © 26,000 O-3S 060 2557 3S 0 BE OF 35-70 14 0 346 2 | 29,000 o-2s 085 G0-4 3F 0-18 084 BBS o-z00% © 30,000 ots L 8599 39 ovts L8G ow t® = ed Cost = ¢ Rg Lakhs Pooh. C.F Rv 3 O30 039 00°27 * . 4 540 O70 20-84 ‘ s 0-30 L 70-97 V ' x p c ry Tw Mus aN ay P ec en OE K(eD TF ss 32,60016.0% 2054 nant. Cost-Votame Profit Anatysion Murs ple Product f ye a A Emm porduces £ seus A Af fount typeof pre tty vob age ee aigfoune typeeg par tty i Lay 40 Hf latey of vob, there awe no constraats O% copacty seu, Ay otenick used bus Curent ly fay ehontayes of & Key yam Cost ley ALL 4 products £ pro casting capacity on a spednh ease j_imachine The firme hes formated gales plan for He ae ot foo T cases up AU sqcoong gens Shown below. This phar 93408 9.300% F6t matinial expected to be onailebl- daoring the geen 8 Lee . ote Tee proctuchion capacity ex pected te be available. Prod Satas os planed 6 w Ti COM + WB Cut) sp00 3000 3,800 6000 6.6. (Refit) 760 880 i 90 S4O : 00 N.C. (@%] wit) 2g0 330 4 2 Material usage 120 160 240 0°80 TT Kis (Kg | c(e-) “FO . iis capac e , oso OFF 0 12,000 apeety MS™ —-O- AO Coe) - : so Bt F magi ) A*B 0's. 80 tel tb datormine te Of Develep © Laces programms? padetl mon alt infornmatios gives above 2 find tee ophmet min cangane te, sasopnegic prefs of [Tp the firm hes laid dona poly that of least SD Jo oft [planned cates of tack product must be prc duted for sates what inp ack wit this have onthe optimat pon 7 te plonned. Sales( Motodal ovarlab, uty me SOOOAV2 + JoOO xe + 25D0K24 + 6000x003 = 21,600 iy La xd A7e Capac eraltatl Sy: ‘SS gee as S000K 6°4 + BO00KOS + WOOKOTFS+ b000KO-2O = oor [S00 + ISFSt 1200 2 ESTES Bases As LP Cncce Profit = fs00ex 4-80 + B000K5-SD +. 2,SUPKEM [1 + 6000K 3-| = %5,35° Fosemunnting Lee: Max. BP= 480W + S:50X4 CSL TSIE jor ubjeck +o ze Plows reox +2407 + 802 < 21,000 ba = | B o4wt o5% + owsyY + 0202 < 6575 A | Rew w,%, 42 7° af As 5 65 at “ah wns Ce} Xe s Sy b | 2: FTE Ga) | y= Sh, 10 (rs) B Laniregw < me New 4% 695. 2S “a 3s Se es) ReOpRmum 80 Lation : B= 4515 . i w = 1h 75D 2 GE 2 5 a BEBE ros. trogis = nee xd + S975 xa-BO oS Lees 364625 gio] >. 2 As per poy, ¥ 7 1.500 & YY % 1,262 5 APS, aa ae = (4975-4 z (48 = a lw = (i380 - 1% (500)= 10, 260 - 4 1,252 entts Reduced ty of 22 W dus to manufacture of y of L. b 2= (8025-45 1250) = 3,000 2 a7 | ye 10,250 -(B) 1 P@ =1|\Oain | G | ) - X= L560 | 1,250 = 3,000 w 2 lor] Meu Produce Min Ot | }eavised profit = 1500x SS + 1250% 6S +3000%K3: 1 ' Sf won x 4-802 97,126Teint Pre ancts / By- Poo decks { AY ° Crd * etow Cos: i pages A, OZ O vothon SUL, BO & 207, by Ve mme’ A wabel OFF 8,000 uitnes of X hot a cost ef Rs %G,000- Produce A of Rs 90/ usre, @ Re t6/ tire LC way te varlous methods Assume 07 — Clemicat % when puccessed Jointiy HW H| in thee prop has esas vel Aliccate (oer cet by puocess losses - awe thar A has to be preese ae Redon its | unit cost of REIO/ time & it can ten be sold Sinan B can be processed former ose cost of es 15/ | £ sotdb abo pre of 0s45/ tine fee \J- at & 451 Cc con be soit as it is- bs Auiocate ‘ont cost Mathod - Phyyet cad Measure: ¢ A & c 20 nav (wer Reatisable vets) Poop by vou 60 30 Nok. ok pee Apoo 2,400 1,400 _ Fest auocarow (C) Shr 24,000 16,000 , AS, 00> Soles (#8) (@) “Boxer texaA00 25K 1,600 One ~ o 429000» &agh00 hase so MNT e) 45cm NAST Of ae aaa eesal Setes Value Method A 6 é } Setss (Ae) 1,20, 000 Berco 5,00 = 24,460 Tt Woot AUocatien 120,07 aoc oe 4 2, 4Ac0' 50,400 14,200 23,400 = 19,002 Cost | unit eee A, O2e i Net Reatisable Value Method ae } babok of+ Pp A @ ec ack A P e mop bY oh. Rh 35, ho ee ea VoL. output (Umus) 4,000 2,400 yeoo de Nev fasx2c00 (45n24e0 BE XIGO Naiox 4000) ~ 15x24) = BS SECU = 2,66, =I Aec00 = Rs F2,000 Lun et an |o+. test attotion = IAGO, agom ... 0 --- 2,68, 000 46,800 44,24,300 18,207 out pu changes B hence revenue Chey For process ose,