SHORT QUIZ WILL BE GIVEN AFTER THE DISCUSSION OF THE ASSIGNMENT :)

20 ITEMS
THEORIES
Total points 90

1 22
2 36
3 24
4 8
90
Requirement 1: Units Unit Price Amount Rate 6 pts
Sales 25,000 80 2,000,000.00 100%
VC 25,000 48 1,200,000.00 60%
CM 32 800,000.00 40%

Requirement 2:
BEP Units BEP Sales 4 pts
=640,000 / 32 =640,000 / 40%
=20,000 units =1,600,000

Requirement 3:

Actual 2,000,000.00 25,000 100% 6 pts

Break even 1,600,000.00 20,000 80%
Margin of Safety 400,000.00 5,000 20%

Requirement 4: 2 pts
Sales 2,000,000
VC 1,200,000
CM 800,000
FC 640,000
Profit 160,000 8%

Requirement 5: 2 pts
NPR = MSR x CMR
= 20% x 40%
=8%

=2,000,000 x 8%
=160,000

Requirement 6: 2 pts
Increase in CM = increase in sales x CMR
=300,000 x 40%
=120,000

22 Points
Data Changes New CMR New BEP New Profit
Requirement 1 =30/150 =900,000/30 =1,500,000 - 900,000
20% 30,000 600,000

Requirement 2a
USP - 165 =45/165 =900,000/45 =(50,000 x 45) - 900,000
27.27% 20,000 =1,350,000

Requirement 2b =54/150 =900,000/54 =(50,000 x 54) - 900,000

UVC - 96 36% 16,667 =1,800,000

Requirement 2c =30/150 =1,440,000 /30 =(50,000 x 30) - 1,440,000

FC - 1,440,000 20% 48,000 =60,000

Requirement 2d 20% 30,000 =(65,000 x 30) - 900,000

Units sold - 65,000 =1,050,000

Requirement 2e 26.03% 26,316 =50,000 x 38) - 1,000,000

USP - 146 =900,000
UVC - 108
FC - 1,000,000
6 pts

6 pts

6 pts

6 pts

6 pts

6 pts

36 Points
Requirement a

Product UCM Mix WAUCM

d 80 2/10 16 160
e 30 5/10 15 150
f 30 3/10 9 90
40 400 Package Contribution Margin 2 pts

Requirement b
Composite BEP = FC / WAUCM
=800,000 / 40
=20,000

d 20% 20,000 4,000

e 50% 20,000 10,000
f 30% 20,000 6,000 8 pts

Requirement c
Composite BEP = FC/ WACMR = 800,000 / 39.60% = 2,020,000 4 pts
WACMR = WAUCM / WAUSP
=40/ 101
=39.60%

Requirement d
Sales per mix = FC / Composite UCM = 800,000/ 400 = 2,000 units 8 pts
Product UCM Sales mix Composite UCM
d 80 2 160
e 30 5 150
f 30 3 90
400
Requirement e 2 pts
Composite sales = FC + Profit / Ave UCM
= (800,000 + 40,000) / 40
= 21,000 units 24 points
Requirement a
BEP = 100,000 / 20 = 5,000 units

Requirement b
BEP = 50,000 + (1,000 X 40) + (60 X 1,000) / 20 = 7,500 Units

Requirement c
FC + Set up + Engeering + target profit / UCM
=50,000 + 40,000 + 60,000 + 40,000 / 20
=9,500 Units

Requirement d
= 50,000 + 28,000 + 54,000 / 20
= 6,600 Units
2 pts

2 pts

2 pts

2 pts

8 pts