2 ABC Method

Proportion of activities :
Purchasing
Raw Materials

Scheduling
Production

Set-Up Machine Making Product

Delivering
Product

Invoicing

Total

Salaries

10%

10%

20%

30%

20%

10%

120,000,000

Electricity

5%

5%

40%

40%

5%

5%

350,000,000

Fuel

5%

0%

20%

25%

40%

10%

80,000,000

Depreciation

10%

10%

20%

30%

20%

10%

280,000,000

Supplies

25%

20%

5%

10%

10%

30%

20,000,000

Purchasing
Raw Materials

Scheduling
Production

Delivering
Product

Invoicing

Cost Breakdown refer to activites :

Set-Up Machine Making Product

Total

Salaries

12,000,000

12,000,000

24,000,000

36,000,000

24,000,000

12,000,000

120,000,000

Electricity

17,500,000

17,500,000

140,000,000

140,000,000

17,500,000

17,500,000

350,000,000

Fuel

4,000,000

16,000,000

20,000,000

32,000,000

8,000,000

80,000,000

Depreciation

28,000,000

56,000,000

84,000,000

56,000,000

28,000,000

280,000,000

28,000,000

5,000,000

4,000,000

1,000,000

2,000,000

2,000,000

6,000,000

total cost

66,500,000

61,500,000

237,000,000

282,000,000

131,500,000

71,500,000

activity driver

5,000.00

2,000.00

2.00

0.90

2,000.00

2,000.00

rate

13,300

30,750

118,500,000

313,333,333

65,750

35,750

Milk

Ice-Cream

Yoghurt

1,000

2,500

1,500

500

1,200

300

Supplies

20,000,000
850,000,000

Tracing activity costs to the product :

Number of Purchasing Order

Number of

activity driver
Purchasing Raw
Materials
Delivering
Product
Invoicing
Scheduling
Production
Set-Up
Machine

TOTAL
5,000.00
2,000.00
2,000.00

Notes
Purchase Order
Delivery

1,000

500

500

300

1200

500

0.5

0.5

0.3

0.2

0.4

Unit Produced

50,000

25,000

10,000

85,000.00

liter

Price

22,000

30,000

50,000

102,000.00

Rp

Milk

Ice-Cream

Yoghurt

TOTAL

1,100,000,000

750,000,000

500,000,000 2,350,000,000

material costs

500,000,000

300,000,000

150,000,000

950,000,000

54.09%

39.31%

Labor costs

150,000,000

75,000,000

30,000,000

255,000,000

16.23%

9.83%

6.42%

66,500,000

1.44%

4.36%

4.27%

Number of Invoice
Number of Production Run
Setup Per Run
Machine Hour

Making Product

2,000.00
2.00
0.90

Invoice
run
Hour per run
per liter

Cost structure Analysis :

revenue/sales

Purchasing Raw Materials

13300000

33250000

19950000

Milk

Ice-Cream

Yoghurt

32.08%

Delivering Product

32,875,000

78,900,000

19,725,000

131,500,000

3.56%

10.34%

4.22%

Invoicing

35,750,000

17,875,000

17,875,000

71,500,000

3.87%

2.34%

3.82%

Scheduling Production

9,225,000

36,900,000

15,375,000

61,500,000

1.00%

4.84%

3.29%

Set-Up Machine

59,250,000

118,500,000

59,250,000

237,000,000

6.41%

15.53%

12.67%

Making Product

94,000,000.00

62,666,666.67

125,333,333.33

282,000,000

10.17%

8.21%

26.81%

Advertising

30,000,000

40,000,000

30,000,000

100,000,000

3.25%

5.24%

6.42%

total costs

924,400,000

763,091,667

total operating income

175,600,000

(13,091,667)

32,491,667

195,000,000

15.96%

-1.75%

6.50%

8.30%

return on sales

467,508,333 2,155,000,000

Answers :
1 profitability refer to traditional approach :
Milk

Ice-Cream

Yoghurt

Total operating income

(108,823,529.41)

95,588,235.29

208,235,294.12

Return on sales

-9.89%

12.75%

41.65%

total operating income

175,600,000

(13,091,667)

32,491,667

return on sales

15.96%

-1.75%

6.50%

2 probability using ABC method

Milk

Ice-Cream

Yoghurt

3 our recommendation to improve company's profitability

based on ABC method, ice cream gives loss profit -1.75% for return on sales
after considering cost structure analysis, there are 2 activities that give most contribution on this loss, which are : delivering product and set-up machine
so, we recommend to try to reduce or minimize the cost for delivering product and set-up machine of ice cream product
Kelompok
Nama

NIM

Vandy Putrandika

29113418

Arthur Ilyas Gemmy

29112235

Novrey Kurniawan

29113244

Sena Indra Wiraguna

29112220