Name: Fajardo, Vanessa BSA-2. Date: Sept.

27, 2020

Lesson 1: Cost- Volume- Profit Analysis Introduction

(Module 1:Learning Activity)

Exercise 1

 Revenue - 200,000 x 100= 20,000,000

 Variable cost- 200,000 x 40= 8,000,000
 Fixed cost- 5,000,000

Revenue. 20,000,000

Less: variable cost. 8,000,000

Contribution margin. 12,000,000

Less: Fixed costs. 5,000,000

Net Income. 7,000,000

 Propose 10% increase

Revenue. 22,000,000

Less: variable cost. 8,800,000

Contribution margin. 13,200,000

Less: Fixed costs. 5,000,000

Addition of fixed cost. 500,000

Net Income. 7,700,000

 Before Campaign
Contribution margin ratio = Contribution margin/ Selling price

= 12,000,000/20,000,000

= 0.6

Break-even sale = 5,000,000/0.6

= 8,333,333

Margin Safety = 20,000,000 - 8,333,333

= 11,666,667

 After campaign

Contribution margin ratio = Contribution margin/ Selling price

= 13,200,000/22,000,000

= 0.6

Break-even sale = 5,500,00/0.6

= 9,166,667

Margin Safety = 22,000,000 - 9,166,667

= 12,833,333

Exercise 2

Sales = 600,000+800,000+200,000 = 1,600,000

Variable cost = 400,000+700,000+100,000 = 1,200,000

Fixed cost = 240,000

Contribution margin ratio = (Sales-Variable cost)/Sales

=(1,600,000-1,200,000)/1,600,000

= 400,000/1,600,000

= 0.25

Break-even in sales dollar = 240,000/0.25

= 960,000

Margin safety = 1,600,000-960,000

= 640,000

Exercise 3

 Fixed cost - 300,000

 Variable cost - 10
 Selling price - 25

Contribution margin ratio = (Sales-Variable cost)/Sales

= (25-10)/25

= 15/25

= 0.6

Break-even in sales dollars = Fixed cost/Contribution margin ratio

= 300,000/0.6

= 500,000

Sales dollars for targeted income = (Fixed cost+Target Income)/Contribution

margin ratio

= (300,000+100,00)/0.6
 = 400,000/0.6

= 666,667

Name: Fajardo, Vanessa BSA-2. Date: Sept. 27, 2020

Lesson 2: Inventory Management Introduction

(Module 1: Learning Activity)

1.
2. Reorder point = Maximum daily usage x Maximum lead time days

= 35x20

= 700

(Note: 12,600/360=35)

3. Safety stock = (Maximum daily usage x Maximum lead time in days) - (Average
daily usage - Average lead time in days)

= (35 x 30) - (35 x 20)

= 1,050-700

= 350

Reorder point = Maximum daily usage x Maximum lead time days

= 35 x 30

= 1,050

4.
5. To get the order total cost:

 (Total demand/EOQ) x fixed cost per order

= (24,000/400) x 38.40

= 60 x 38.40

= 2,304

6. To get the total inventory carrying cost

 (Total demand/EOQ) x carrying cost

= (24,000/400) x 11.52
= 60 x 11.52
= 691.2