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    26. Relevant Cost Analysis Marginal Revenue Variable Costs Materials Labor Overhead Contribution per unit Contribution for Revenue in 1981 per unit Average unit cost Contribution margin Net Revenue erosion Set up costs Net Relevant Revenues is Added assets and costs Materials WIP Finished Goods Goods at hi-value accnts rec. Net 30 days.

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    26. Relevant Cost Analysis Marginal Revenue Variable Costs Materials Labor Overhead Contribution per unit Contribution for Revenue in 1981 per unit Average unit cost Contribution margin Net Revenue erosion Set up costs Net Relevant Revenues is Added assets and costs Materials WIP Finished Goods Goods at hi-value accnts rec. Net 30 days.

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    11 views3 pages

    BBC

    Uploaded by

    kaunrohit
    26. Relevant Cost Analysis Marginal Revenue Variable Costs Materials Labor Overhead Contribution per unit Contribution for Revenue in 1981 per unit Average unit cost Contribution margin Net Revenue erosion Set up costs Net Relevant Revenues is Added assets and costs Materials WIP Finished Goods Goods at hi-value accnts rec. Net 30 days.

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    of 3

    26.

    15
    Relevant Cost Analysis
    Marginal Revenue
    Variable Costs
    Materials
    Labor
    Overhead

    92.29
    39.8
    19.6
    9.8

    Contribution per unit


    Contribution for

    69.20
    23.09
    25000 units

    Revenue in 1981 per unit


    Average unit cost
    Contribution margin

    110.05
    69.20
    40.85

    Net Revenue erosion


    Set up costs
    Net Relevant Revenues

    122551.5
    5000
    127551.5

    is

    577250

    Added assets and costs


    Materials
    WIP
    Finished Goods
    Goods at Hi-Valu
    Accnts Rec. net 30 Days

    25000 60 days
    4166.667
    1000
    500
    25000 avg 60 days
    25000 30 days
    2083.333
    Total Relevant Costs

    Relevant Assets Costs


    PreTax cost of Funds
    Record keeping costs (for receivables or inventories) 1.0
    Inventory insurance 0.3
    State property tax on inventory 0.7
    Inventory-handling labor and equipment 3.0
    Pilferage, obsolescence, breakage, etc. 0.5
    Relevant Assets Cost
    Net
    Per Bicycle
    Incremental

    108946
    1 Month

    Cash Reqd
    Revenues from operations
    Incremental Revenue
    Total

    1 Year
    83325
    889571
    192271
    1081842 12982100

    39.8
    60
    83.9
    83.9
    92.29

    18%
    1%
    0.30%
    0.70%
    3%
    0.50%
    24%

    165833.33
    60000.00
    41950.00
    349583.33
    192270.83
    809637.50

    145734.75
    8096.38
    2428.91
    5667.46
    24289.13
    4048.19
    190264.81
    999902.31
    40.00

    Sales Revenus
    COGS
    Gross Margin
    Selling and Admin Exp
    Income before Tax
    Tax
    NI

    In thousands
    12982
    9045
    3937
    2804
    1133
    521
    612

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