units sold

it
Price/Unit
Total Revenue
l Profit
SWIMSKIN INC. PROBLEM
 Manufacturing cost
ales & Administration cost
Distribution cost/unit Manufacturing cost/unit
Total Fixed Cost
Total Variable Cost
Total Cost
Total Profit
 SWIMSKIN INC. PROBLE

Price

Unit sold
Fixed manufacturing cost
Marketing cost
Sales & administration cost
Manufacturing Cost/unit
Distribution Cost/unit
KIN INC. PROBLEM

Profit

Total Revenue
Total Cost
Manufacturing Cost
Distribution Cost
SWIMSKIN INC. PROBLEM

PARAMETERS

Unit sold 3000

Fixed manufacturing cost $ 52,000.00
Marketing cost $ 75,000.00
Sales and administration cost $ 18,000.00
Manufacturing Cost/unit $ 75.75
Distribution Cost/unit $ 5.00

DECISION

Price/unit $ 129.95

SUMMARY OF KEY OUTCOMES

Total Profit $ 2,600.00

CALCULATIONS

Manufacturing Cost $ 227,250.00

Distribution Cost $ 15,000.00

INCOME AND CF STATEMENT

Total Revenue $ 389,850.00

Fixed manufacturing cost $ 52,000.00
Distribution Cost $ 15,000.00
Manufacturing Cost $ 227,250.00
Marketing cost $ 75,000.00
Sales and administration cost $ 18,000.00
Total Cost $ 387,250.00
Profit $ 2,600.00
SWIMSKIN INC. PROBLEM

PARAMETERS a) Revenue/Contribution margin/Profit data

Total Revenue
Unit sold 3000 $ 389,850.00
Fixed manufacturing cost $ 52,000.00 units sold 500 $ 64,975.00
Marketing cost $ 75,000.00 1000 $ 129,950.00
Sales and administration cost $ 18,000.00 1500 $ 194,925.00
Manufacturing Cost/unit $ 75.75 2000 $ 259,900.00
Distribution Cost/unit $ 5.00 2500 $ 324,875.00
3000 $ 389,850.00
3500 $ 454,825.00
DECISION 4000 $ 519,800.00
4500 $ 584,775.00
Price/unit $ 129.95 5000 $ 649,750.00

SUMMARY OF KEY OUTCOMES c) variation of profit with change in price and units

Total Profit $ 2,600.00 $ 2,600.00

units sold 500.00
1000.00
CALCULATIONS 1500.00
2000.00
Manufacturing Cost $ 227,250.00 2500.00
Distribution Cost $ 15,000.00 3000.00
3500.00
4000.00
INCOME AND CF STATEMENT 4500.00
5000.00
Total Revenue $ 389,850.00
Fixed manufacturing cost $ 52,000.00
Distribution Cost $ 15,000.00 e) variation of profit with change in marketing cos
Manufacturing Cost $ 227,250.00
Marketing cost $ 75,000.00 $ 2,600.00
Sales and administration cost $ 18,000.00 price $ 99.95
Total Cost $ 387,250.00 $ 104.95
Profit $ 2,600.00 $ 109.95
$ 114.95
$ 119.95
$ 124.95
$ 129.95
$ 134.95
$ 139.95
$ 144.95
 $ 149.95

f) Effect on profit

Scenario Unit Price

Worst Case 99.95
Likely case 129.95
Best case 149.95
ution margin/Profit data
Contribution margin Profit
$ 147,600.00 $ 2,600.00
$ 24,600.00 $ -120,400.00
$ 49,200.00 $ -95,800.00
$ 73,800.00 $ -71,200.00
$ 98,400.00 $ -46,600.00
$ 123,000.00 $ -22,000.00
$ 147,600.00 $ 2,600.00
$ 172,200.00 $ 27,200.00
$ 196,800.00 $ 51,800.00
$ 221,400.00 $ 76,400.00
$ 246,000.00 $ 101,000.00

rofit with change in price and units sold

Price
$ 119.95 $ 129.95 $ 139.95 $ 149.95 $ 159.95
$ -125,400.00 $ -120,400.00 $ -115,400.00 $ -110,400.00 $ -105,400.00
$ -105,800.00 $ -95,800.00 $ -85,800.00 $ -75,800.00 $ -65,800.00
$ -86,200.00 $ -71,200.00 $ -56,200.00 $ -41,200.00 $ -26,200.00
$ -66,600.00 $ -46,600.00 $ -26,600.00 $ -6,600.00 $ 13,400.00
$ -47,000.00 $ -22,000.00 $ 3,000.00 $ 28,000.00 $ 53,000.00
$ -27,400.00 $ 2,600.00 $ 32,600.00 $ 62,600.00 $ 92,600.00
$ -7,800.00 $ 27,200.00 $ 62,200.00 $ 97,200.00 $ 132,200.00
$ 11,800.00 $ 51,800.00 $ 91,800.00 $ 131,800.00 $ 171,800.00
$ 31,400.00 $ 76,400.00 $ 121,400.00 $ 166,400.00 $ 211,400.00
$ 51,000.00 $ 101,000.00 $ 151,000.00 $ 201,000.00 $ 251,000.00

rofit with change in marketing cost and price

Marketing Cost
$ 25,000.00 $ 50,000.00 $ 75,000.00 $ 100,000.00 $ 125,000.00
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
Err:504 Err:504 Err:504 Err:504 Err:504
 Err:504 Err:504 Err:504 Err:504 Err:504

Units Sold
2500
3000
4000
d) variation of profit with change in marketing cost
profit
$ 2,600.00
Marketing Cost $ 25,000.00 Err:504
$ 50,000.00 Err:504
$ 75,000.00 Err:504
$ 100,000.00 Err:504
$ 125,000.00 Err:504
Scenario Summary
Current Values: Worst Case Likely case Best Case
Changing Cells:
Unit_Price $ 129.95 $ 99.95 $ 129.95 $ 149.95
Units_sold 3000 2500 3000 4000
Result Cells:
Profit $ 2,600.00 $ -97,000.00 $ 2,600.00 $ 131,800.00
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
SWIMSKIN INC. PROBLEM

PARAMETERS b) New data table when manufacturing cost per un

Unit sold 3000

Fixed manufacturing cost $ 52,000.00
Marketing cost $ 60,000.00 units sold 500
Sales and administration cost $ 18,000.00 1000
Manufacturing Cost/unit $ 95.00 1500
Distribution Cost/unit $ 5.00 2000
2500
3000
DECISION 3500
4000
Price/unit $ 129.95 4500
5000

SUMMARY OF KEY OUTCOMES

Total Profit $ -40,150.00

CALCULATIONS

Manufacturing Cost $ 285,000.00

Distribution Cost $ 15,000.00

INCOME AND CF STATEMENT

Total Revenue $ 389,850.00

Fixed manufacturing cost $ 52,000.00
Distribution Cost $ 15,000.00
Manufacturing Cost $ 285,000.00
Marketing cost $ 60,000.00
Sales and administration cost $ 18,000.00
Total Cost $ 430,000.00
Profit $ -40,150.00
hen manufacturing cost per unit changes from $75.75 to $95 and marketing cost is reduced from $75,000 to $60,000

Total Revenue Contribution Margin Profit

$ 389,850.00 $ 89,850.00 $ -40,150.00
$ 64,975.00 $ 14,975.00 $ -115,025.00
$ 129,950.00 $ 29,950.00 $ -100,050.00
$ 194,925.00 $ 44,925.00 $ -85,075.00
$ 259,900.00 $ 59,900.00 $ -70,100.00
$ 324,875.00 $ 74,875.00 $ -55,125.00
$ 389,850.00 $ 89,850.00 $ -40,150.00
$ 454,825.00 $ 104,825.00 $ -25,175.00
$ 519,800.00 $ 119,800.00 $ -10,200.00
$ 584,775.00 $ 134,775.00 $ 4,775.00
$ 649,750.00 $ 149,750.00 $ 19,750.00
SWIMSKIN INC. PROBLEM

what happens to profits in the data table if the

PARAMETERS
c) variation of profit with change in price and units so
Unit sold 3000
Fixed manufacturing cost $ 52,000.00 $ 19,850.00
Marketing cost $ 75,000.00 units sold 500.00
Sales and administration cost $ 18,000.00 1000.00
Manufacturing Cost/unit $ 70.00 1500.00
Distribution Cost/unit $ 5.00 2000.00
2500.00
3000.00
DECISION 3500.00
4000.00
Price/unit $ 129.95 4500.00
5000.00

SUMMARY OF KEY OUTCOMES

Total Profit $ 19,850.00

CALCULATIONS

Manufacturing Cost $ 210,000.00

Distribution Cost $ 15,000.00

INCOME AND CF STATEMENT

Total Revenue $ 389,850.00

Fixed manufacturing cost $ 52,000.00
Distribution Cost $ 15,000.00
Manufacturing Cost $ 210,000.00
Marketing cost $ 75,000.00
Sales and administration cost $ 18,000.00
Total Cost $ 370,000.00
Profit $ 19,850.00
ens to profits in the data table if the variable manufacturing cost is reduced to $70 per unit?

f profit with change in price and units sold

Price
$ 119.95 $ 129.95 $ 139.95 $ 149.95 $ 159.95
$ -122,525.00 $ -117,525.00 $ -112,525.00 $ -107,525.00 $ -102,525.00
$ -100,050.00 $ -90,050.00 $ -80,050.00 $ -70,050.00 $ -60,050.00
$ -77,575.00 $ -62,575.00 $ -47,575.00 $ -32,575.00 $ -17,575.00
$ -55,100.00 $ -35,100.00 $ -15,100.00 $ 4,900.00 $ 24,900.00
$ -32,625.00 $ -7,625.00 $ 17,375.00 $ 42,375.00 $ 67,375.00
$ -10,150.00 $ 19,850.00 $ 49,850.00 $ 79,850.00 $ 109,850.00
$ 12,325.00 $ 47,325.00 $ 82,325.00 $ 117,325.00 $ 152,325.00
$ 34,800.00 $ 74,800.00 $ 114,800.00 $ 154,800.00 $ 194,800.00
$ 57,275.00 $ 102,275.00 $ 147,275.00 $ 192,275.00 $ 237,275.00
$ 79,750.00 $ 129,750.00 $ 179,750.00 $ 229,750.00 $ 279,750.00
 ACME COMPANY PROBLEM

Total Profit

Total Cost
Total Revenue

Total Variable
Cost
Charge/participant

Hotel Cost

Number of
participant
PROBLEM

Total Cost

Fixed Cost
Total Variable
Cost

Organizing Cost

Hotel Cost Speakers fee

Number of Fee of each

speakers speaker
 ACME COMPANY PROBLEM

Charge/partcipant

Number of participants
Organizing Cost
Speaker fee
Number of speakers
Food & lodging cost/participant
MPANY PROBLEM

Total profit

Total revenue
Organizing Cost
Speakers fee
Food and lodging cost
Total Cost
ACME COMPANY PROBLEM

Parameters

Number of participants 42
Organizing Cost $ 15,000.00
Speaker fee $ 700.00
Number of speakers 10
Food and lodging cost/participant $ 300.00

Decision

Charge/participant $ 1,200.00

Summary of Key Outcomes

Total Profit $ 12,800.00

Calculations

Speakers fee $ 7,000.00

Food and lodging cost $ 15,600.00

Income and CF statement

Total revenue $ 50,400.00

Organizing Cost $ 15,000.00
Speakers fee $ 7,000.00
Food and lodging cost $ 15,600.00
Total Cost $ 37,600.00
Total Profit $ 12,800.00
ACME COMPANY PROBLEM

Parameters

Number of participants 42 b) variation of profit with ch

Organizing Cost $ 15,000.00
Speaker fee $ 700.00
Number of speakers 10
Food and lodging cost/participant $ 300.00 charge per participant

Decision

Charge/participant $ 1,200.00

Summary of Key Outcomes

Total Profit $ 12,800.00

Calculations c) How many paying particip

Speakers fee $ 7,000.00

Food and lodging cost $ 15,600.00

Income and CF statement

Total revenue $ 50,400.00

Organizing Cost $ 15,000.00
Speakers fee $ 7,000.00
Food and lodging cost $ 15,600.00
Total Cost $ 37,600.00
Total Profit $ 12,800.00
f
b) variation of profit with charge for partcipants

Profit
$ 12,800.00
charge per participant $ 600.00 $ -12,400.00
$ 700.00 $ -8,200.00
$ 800.00 $ -4,000.00
$ 900.00 $ 200.00
$ 1,000.00 $ 4,400.00
$ 1,100.00 $ 8,600.00
$ 1,200.00 $ 12,800.00
$ 1,300.00 $ 17,000.00
$ 1,400.00 $ 21,200.00
$ 1,500.00 $ 25,400.00

c) How many paying participants must register for Acme to breakeven?

27.777 which rounds up to 28 participants.

HONEYDUKES CO. PROBLEM
CO. PROBLEM
 HONEYDUKES CO. PROBLEM

Amount of contract grapes

Unit price of raisins

unit pound price of grapes in open market

unit pound price of grapes under contract
unit pound price of sugar coating
variable processing cost per pound in-house
fixed cost
variable processing cost per pound external
initial base for unit sold
pound of grapes required for 1 pound of sugar coated raisins
pound of sugar coating required for 1 pound of sugar coated raisins
pound of grapes processed in-house
increase or decrease per penny
tentative selling price
CO. PROBLEM

Profit

Total cost
total processing cost
in-house processing cost
outsourced processing cost
demand of grapes
amount of grapes processed in-house
amount of grapes processed outside
raw material
total cost of open market grapes
total cost of sugar coating
demand for raisins
amount of open market grapes
HONEYDUKES CO. PROBLEM

PARAMETERS

unit pound price of grapes in open market $ 0.30

unit pound price of grapes under contract $ 0.25
unit pound price of sugar coating $ 0.55
variable processing cost per pound in-house $ 0.20
fixed cost $ 200,000.00
variable processing cost per pound external $ 0.45
initial base for unit sold 750000
pound of grapes required for 1 pound of sugar coated raisins 2.50
pound of sugar coating required for 1 pound of sugar coated raisins 0.05
pound of grapes processed in-house 1500000
increase or decrease per penny 15000
tentative selling price $ 2.20

DECISION

grapes to buy under contract 1000000

selling price of sugar coated raisins per pound $ 2.20

SUMMARY OF KEY OUTCOMES

total profit $ 448,125.00

CALCULATIONS

Pounds of grapes required 1875000

pounds of sugar coat required 37500
actual units sold 750000
pounds of grapes to be procured from open market 875000

INCOME AND CF STATEMENT

total revenue $ 1,650,000.00

fixed cost $ 200,000.00
grapes procurement cost in open market $ 262,500.00
grapes procurement cost in contract $ 250,000.00
variable processing cost external $ 168,750.00
variable processing cost in house $ 300,000.00
sugar coat procurement cost $ 20,625.00
Total Cost $ 1,201,875.00
Total profit $ 448,125.00
HONEYDUKES CO. PROBLEM

PARAMETERS

unit pound price of grapes in open market $ 0.30

unit pound price of grapes under contract $ 0.25
unit pound price of sugar coating $ 0.55
variable processing cost per pound in-house $ 0.20
fixed cost $ 200,000.00
variable processing cost per pound external $ 0.45
initial base for unit sold 750000
pound of grapes required for 1 pound of sugar coated raisins 2.50
pound of sugar coating required for 1 pound of sugar coated raisins 0.05
pound of grapes processed in-house 1500000
increase or decrease per penny 15000
tentative selling price $ 2.20

DECISION

grapes to buy under contract 1000000

selling price of sugar coated raisins per pound $ 2.20

SUMMARY OF KEY OUTCOMES

total profit $ 448,125.00

CALCULATIONS

Pounds of grapes required 1875000

pounds of sugar coat required 37500
actual units sold 750000
pounds of grapes to be procured from open market 875000

INCOME AND CF STATEMENT

total revenue $ 1,650,000.00

fixed cost $ 200,000.00
grapes procurement cost in open market $ 262,500.00
grapes procurement cost in contract $ 250,000.00
variable processing cost external $ 168,750.00
variable processing cost in house $ 300,000.00
sugar coat procurement cost $ 20,625.00
Total Cost $ 1,201,875.00
Total profit $ 448,125.00
a) What is the breakeven value of the open-market grape price?

0.81

b) profit varies as a function of the price set for raisins

profit
$ 448,125.00
price $ 1.80 $ 86,625.00
$ 1.90 $ 222,000.00
$ 2.00 $ 327,375.00
$ 2.10 $ 402,750.00
$ 2.20 $ 448,125.00
$ 2.30 $ 463,500.00
$ 2.40 $ 355,125.00
$ 2.50 $ 141,750.00
$ 2.60 $ -139,125.00
$ 2.70 $ -450,000.00
$ 2.80 $ -790,875.00

c) profit varies as a function of the price set for raisins and the amount of grapes brought under contract

grapes under contract

$ 448,125.00 500000 600000 700000 800000 900000
Price $ 1.80 $ 61,625.00 $ 66,625.00 $ 71,625.00 $ 76,625.00 $ 81,625.00
$ 1.90 $ 197,000.00 $ 202,000.00 $ 207,000.00 $ 212,000.00 $ 217,000.00
$ 2.00 $ 302,375.00 $ 307,375.00 $ 312,375.00 $ 317,375.00 $ 322,375.00
$ 2.10 $ 377,750.00 $ 382,750.00 $ 387,750.00 $ 392,750.00 $ 397,750.00
$ 2.20 $ 423,125.00 $ 428,125.00 $ 433,125.00 $ 438,125.00 $ 443,125.00
$ 2.30 $ 438,500.00 $ 443,500.00 $ 448,500.00 $ 453,500.00 $ 458,500.00
$ 2.40 $ 330,125.00 $ 335,125.00 $ 340,125.00 $ 345,125.00 $ 350,125.00
$ 2.50 $ 191,750.00 $ 196,750.00 $ 201,750.00 $ 191,750.00 $ 166,750.00
$ 2.60 $ -14,125.00 $ -39,125.00 $ -64,125.00 $ -89,125.00 $ -114,125.00
$ 2.70 $ -325,000.00 $ -350,000.00 $ -375,000.00 $ -400,000.00 $ -425,000.00
$ 2.80 $ -665,875.00 $ -690,875.00 $ -715,875.00 $ -740,875.00 $ -765,875.00
d) Scenario Manager

Scenario Open market grape price/lb

LOW $ 0.25
MEDIUM $ 0.30
HIGH $ 0.35
 1000000 1100000 1200000 1300000 1400000 1500000
$ 86,625.00 $ 91,625.00 $ 96,625.00 $ 101,625.00 $ 106,625.00 $ 111,625.00
$ 222,000.00 $ 227,000.00 $ 232,000.00 $ 237,000.00 $ 242,000.00 $ 247,000.00
$ 327,375.00 $ 332,375.00 $ 337,375.00 $ 342,375.00 $ 347,375.00 $ 352,375.00
$ 402,750.00 $ 407,750.00 $ 412,750.00 $ 417,750.00 $ 422,750.00 $ 427,750.00
$ 448,125.00 $ 453,125.00 $ 458,125.00 $ 463,125.00 $ 468,125.00 $ 473,125.00
$ 463,500.00 $ 468,500.00 $ 473,500.00 $ 478,500.00 $ 483,500.00 $ 488,500.00
$ 355,125.00 $ 360,125.00 $ 342,625.00 $ 317,625.00 $ 292,625.00 $ 267,625.00
$ 141,750.00 $ 116,750.00 $ 91,750.00 $ 66,750.00 $ 41,750.00 $ 16,750.00
$ -139,125.00 $ -164,125.00 $ -189,125.00 $ -214,125.00 $ -239,125.00 $ -264,125.00
$ -450,000.00 $ -475,000.00 $ -500,000.00 $ -525,000.00 $ -550,000.00 $ -575,000.00
$ -790,875.00 $ -815,875.00 $ -840,875.00 $ -865,875.00 $ -890,875.00 $ -915,875.00
Scenario Summary
Current Values: Low Medium
Changing Cells:
open_market_grape_price_per_lb $ 0.30 $ 0.25 $ 0.30
Result Cells:
Total_Profit $ 448,125.00 $ 491,875.00 $ 448,125.00
Notes: Current Values column represents values of changing cells at
time Scenario Summary Report was created. Changing cells for each
scenario are highlighted in gray.
 High

$ 0.35

$ 404,375.00