TC = VC + FC

Break Even Point

TR = TC
TR = VC + FC
TR = PxQ
PxQ = (VC/Unit x Q) + FC
FC = (P x Q) - (VC/Unit x Q)
FC = Q (P-VC/Unit) *CM = in the first management for retalier/reseller
FC = Q x CM/Unit *Gross Profit/Gross Margin = Revenue - COGs (biaya produksi)
Q = FC / CM per unit (BEP)

P = 500 A
VC/Unit = 300 B
CM/Unit = 200 C

FC = 100,000 D
Q (BEP) = 500 E

Financial Statement
TR 250,000 Revenue AxE
VC 150,000 Variable Cost BxE
CM 100,000 Contribution Margin (A x E) - (B x E)
FC 100,000 Fixed Cost D
Net Income - Net Income F Nol ketika BEP

Target Profit 100,000 F

Q = FC / (CM/Unit) BEP
Q = (FC + Target Profit) / (CM/Unit) Target Profit

Target Profit 1,000 (D + F)/C G

for 100 K in Quantity

Financial Statement
TR 500,000 Revenue AxG
VC 300,000 Variable Cost BxG
CM 200,000 Contribution Margin (A x G) - (B x G)
FC 100,000 Fixed Cost D
Net Income 100,000 Net Income F

3-17
Unit Solds = 410,000 unit VC $ 60 /unit Sales
P = $ 68 FC $ 1,640,000 VC
TR = $ 27,880,000 TC 26,240,000 CM
FC
CM = $ 3,280,000 a Op. Income
(1)
 (1)
Op. Income = $ 1,640,000 b

Unit Solds = 410,000 unit VC $ 54 /unit

P = $ 68 FC $ 5,330,000 Sales
TR = $ 27,880,000 TC 27,470,000 VC
CM
CM = $ 5,740,000 a FC
(2)
Op. Income = $ 410,000 b Op. Income

No, he shouldn't because it can decrease (3)

the operating income

3-37
Revenue = $ 300,000 P = $ 60
VC total = $ 125,000 Unit Solds = 5,000 unit
CM = $ 175,000 VC/unit = $ 25 /unit
FC = $ 100,000
Op. Income = $ 75,000

(1)
Revenue = $ 300,000 P = $ 60
VC total = $ 100,000 Unit Solds = 5,000 unit
CM = $ 200,000 VC/unit = $ 20 /unit
FC = $ 115,000
Op. Income = $ 85,000 presentase kenaikan = 13.3%

(2)
Revenue = $ 360,000 P = $ 60
VC total = $ 125,000 Unit Solds = 6,000 unit
CM = $ 235,000 VC/unit = $ 16 /unit
FC = $ 130,000 Sales Cost = $ 30,000
Op. Income = $ 105,000 presentase kenaikan = 35.3%

(3)
Revenue = $ 350,000 P = $ 70
VC total = $ 125,000 Unit Solds = 5,000 unit
CM = $ 225,000 VC/unit = $ 32 /unit
FC = $ 115,000 presentase kenaikan = 33.3%
Op. Income = $ 110,000

(4)
Revenue = $ 480,000
VC total = $ 125,000 presentase kenaikan = 72.7%
CM = $ 355,000
FC = $ 200,000 doubled FC
Op. Income = $ 155,000

Opsi 2-4 exceeds the Brown's targeted increases in income by 25%

alier/reseller
- COGs (biaya produksi)

Case Revenues VC FC
a 2,000 500 300
b 2,000 500 300
c 1,000 700 300
d 1,500 300 300

ol ketika BEP

Financial Statement
27,880,000 CM/Unit 8 Sales
24,600,000 BEP = 205,000 (FC)/(CM/Unit) VC
3,280,000 CM
1,640,000 FC
1,640,000 Op. Income
Financial Statement
27,880,000 CM/Unit 14 Sales
22,140,000 BEP = 380,714 (FC)/(CM/Unit) VC
5,740,000 CM
5,330,000 FC
410,000 Op. Income
 TC Op. Income CM in %
800 1,200 75%
1,800 200 75%
1,000 - 30%
600 900 40%

Financial Statement on BEP

13,940,000
12,300,000
1,640,000
1,640,000
-
Financial Statement on BEP
25,888,571 But there is an opportunity to increase the volume
20,558,571 amounted
5,330,000 Target OP Income in Unit:
5,330,000 (FC + OP Income scenario 1) / CM Unit
- Target OP Income in Unit = 497,857 121%
 Financial Statement Opportunity
Sales 33,854,286 if want to reach BEP
VC 26,884,286 as much as BEP
CM 6,970,000 Target OP Income in Unit:
FC 5,330,000 (FC + OP Income scenario 1) / CM Unit
Op. Income 1,640,000 Target OP Income in Unit =
 Financial Statement Opportunity
Sales 51,777,143
VC 41,117,143
CM 10,660,000
ario 1) / CM Unit FC 5,330,000
761,429 186% Op. Income 5,330,000
Sales 114,800

Cost Object Job 650

Direct Cost
DM 50,000
DL 19,000

Allocation based on Machin Hours

Job 650 500
Total Job 2,480

Total OH = 65,100

OH/ machine hours 26

OH Job 650 13,125

Financial Statement

Revenue 114,800
Expenses:
DM = 50,000
DL = 19,000
OH = 13,125
Manufacturing Expenses 82,125

Net Income = 32,675

Hours B
Hours C

A 65,100

A/C D

DxB E

G
Allocation OH with Unit Sold

Regular Deluxe Overhead Cost

Price 40 50 Maintenance
Shipping
DM 15 15
DL 10 20
OH? 10 10 Unit Sold (unit)
Regular 1,000
Total Cost 35 45 Deluxe 1,000
2,000

Financial Statement OH per unit

Regular Deluxe
Revenue 40,000 50,000

DM 15,000 15,000
DL 10,000 20,000
OH 10,000 10,000
Total Cost 35,000 45,000
Total Income
Net Income 5,000 5,000 10,000

Allocation OH with Labor Hours

Regular Deluxe Overhead Cost

Price 40 50 Maintenance
Shipping
DM 15 15
DL 10 20
OH? 6.67 13.33 Labor Hr (Hours)
Total Cost 32 48 Regular 1
Deluxe 2

Financial Statement
Regular Deluxe Cost Per Hours
Revenue 40,000 50,000

DM 15,000 15,000
DL 10,000 20,000
OH 6,667 13,333
Total Cost 31,667 48,333
Total Income
Net Income 8,333 1,667 10,000

Cost Driver: Aktivitas yang menyebabkan terjadinya suatu biaya

Regular
Price 40

DM 15
DL 10
OH Mntnc 3
OH Shipp 1
Total Cost 29

Financial Statement
Regular
Revenue 40,000

DM 15,000
DL 10,000
OH Mntnc 3,000
OH Shipp 1,000
Total Cost 29,000
 Net Income 11,000

5-21
Based on Unit Solds
Overhead Cost
Machining costs
Setup costs
Inspection costs

Unit Sold (unit)

Mathematical 50,000
Financial 100,000
150,000

OH per unit 4
OH Math 200,000
OH Financial 400,000

ABC Costing
Break Down OH Cost - Machining Costs
Machining - Machine Hours
Product Mach.Hr
Mathematical 25,000
Financial 50,000
75,000
Cost/Hr 5

Break Down OH Cost - Setup Costs

Product No. Prod Runs
Mathematical 50
Financial 50
100
Cost per Setup Costs 1,200

Break Down OH Cost -Inspection Cost

Product Insp. Hours
Mathematical 1,000
Financial 500
1,500
Cost per Insp. Costs 70

OH Calculation
 Mathematical
OH Machining 125,000
OH Setup Cost 60,000
OH Inspection 70,000
OH Total 255,000
USD
15,000
5,000
20,000 A

10 A/B

USD
 15,000
5,000
20,000 A

Qty Sold Working Hours

1,000 1,000
1,000 2,000
3,000 B

6.67 A/B

Deluxe Overhead Cost USD

50 Maintenance 15,000 A
Shipping 5,000 D
15 20,000
20
12 Break Down OH Cost - Maintenance Activities
4 Maintenance - Machine Hours
51 Product Mach.Hr Qty Sold Total Hours
Regular 1 1,000 1,000
Deluxe 4 1,000 4,000
Deluxe 5,000
50,000 Cost/Hr 3

15,000 Break Down OH Cost - Shipping (no. of Shiping in Lots)

20,000 Product Lots Qty Sold Total Shipping
12,000 Regular 40 1,000 25
4,000 Deluxe 10 1,000 100
51,000 125
 Cost per Shipping 40
- 1,000

Total Income
10,000

USD Mathematical Financial

375,000 No. of Prod 50,000 100,000
120,000
105,000 DM 150,000 300,000
600,000 DL 50,000 100,000
OH? 200,000 400,000
Total Cost 400,000 800,000

Cost per unit 8 8

600,000

Qty Sold
50,000
100,000

Qty Sold
50,000
100,000

Qty Sold
50,000
100,000
Financial Mathematical Financial
250,000 No. of Prod 50,000 100,000
60,000
35,000 DM 150,000 300,000
345,000 DL 50,000 100,000
600,000 OH Machining 125,000 250,000
OH Setup Cost 60,000 60,000
OH Inspection 70,000 35,000
Total Cost 455,000 745,000

Cost per unit 9 7

 B
A/B

Shiping in Lots)
otal Shipping

C
D/C
 Favorable: Kondisi dimana akan menaikan net incomenya dibanding budget
Unfavorable: Kondisi dimana akan menurunkan net incomenya dibanding budget
dari sisi mana unfavorable nya? Dari 2 hal: dari revenue/expenses

dibandingkan actual vs budget

contoh: Jika target net income lebih besar berarti favorable
Dilihat dulu dari 2 hal revenue dan expenses.
Jika dilihat revenue nya lebih besar, maka favorable
Jika efisiensi dari expensesnya meningkat maka itu favorable

Static Budget vs Actual

Unit Sold

DM
DL
Total

(untuk menyetarakan
actual vs static budget
based on quantity)
 Actual Flexible Budget

Unit Sold 130,000 130,000

Revenues 715,000 455,000 260,000 F
VC 515,000 260,000 255,000 U
CM 200,000 195,000 5,000 F
FC 140,000 120,000 20,000 U
Op. Income 60,000 75,000 - 15,000 U

Flexible Budget Variances Sales Volume Variances

- 15,000 15,000
selisih -

Actual Results Flexible Budget

Unit Solds 355,000 355,000

Revenue 1,917,000 5.40 1,934,750

VC 1,260,250 3.55 1,242,500
CM 656,750 692,250

Flexible Budget Variances Sales Volume Variances

- 35,500 19,500
selisih - 16,000

The problem is higher unit sold but CM decrease

 (untuk menyetarakan
actual vs static budget
based on quantity)

Actual Flexible Budget Static Budget

585,000 585,000 528,000

(Cost/Unit)
112,554,000 102,375,000 10,179,000 U 92,400,000 175 DM
28,641,600 29,250,000 - 608,400 F 26,400,000 50 DL
141,195,600 131,625,000 118,800,000
9,570,600 12,825,000 Production Volume Variance
unfavorable sum unfavorable Permasalahan 2 saja untuk analisa:
22,395,600 Price per Unit dan Quantity
unfavorable
 Static Budget

120,000 Price per unit Variance (DM Actual - DM Static Budget)

420,000 3.50 275,000 U DM Act - DM Stat Bud
240,000 VC/unit 20,000 U DL Act - DM Stat Bud
180,000 2 20,000 U
120,000 315,000
60,000

Static Budget
345,000 Price per unit
5.45
- 17,750 U 1,880,250 VC/unit
17,750 U 1,207,500 4
- 35,500 U 672,750

Volume Variances
 Variance (DM Actual - DM Static Budget)
20,154,000 U DM Act - DM Stat Bud
2,241,600 U DL Act - DM Stat Bud
22,395,600

untuk analisa:
Year 0 1 2
Fixed capital investment $ -50,000
Cash inflow from reduced labor cost $ 18,000 $ 18,000
Cash inflow from the sale of the machine
Cash flows $ -50,000 $ 18,000 $ 18,000
Discount rate 18% 18% 18%
Present Value - 50,000 15,254 12,927
Net Present Value $ 8,475

Net Present Value $ 8,475 Interest rate should be equal for every year

Year 0 1 2
Cash flows $ -50,000 $ 18,000 $ 18,000
Discount rate 18% 18% 18%
Present value - 50,000 15,254 12,927
Cumulative present value cash flows - 50,000 - 34,746 - 21,818

Discounted Payback Period 4.16 years

0.16

IRR 25% 0.2504297743

Year 0 1 2
Cash flows $ -50,000 $ 18,000 $ 18,000
Cumulative cash flows $ -50,000 $ -32,000 $ -14,000

Payback period 2.78 years

Year 0 1 2
Fixed capital investment $ -3,170
Cash inflow from reduced labor cost $ 1,000 $ 1,000
Cash inflow from the sale of the machine
Cash flows $ -3,170 $ 1,000 $ 1,000
Discount rate 10% 10% 10%
Present Value - 3,170 909 826
Net Present Value $ -0

Net Present Value $ (0) Interest rate should be equal for every year
Year 0 1 2
Cash flows $ -3,170 $ 1,000 $ 1,000
Discount rate 10% 10% 10%
Present value - 3,170 909 826
Cumulative present value cash flows - 3,170 - 2,261 - 1,434

Discounted Payback Period 4.00022 years

0.00

IRR 10% 0.0999803916

Year 0 1 2
Cash flows $ -3,170 $ 1,000 $ 1,000
Cumulative cash flows $ -3,170 $ -2,170 $ -1,170

Payback period 3.17 years

Year 0 1 2
Fixed capital investment $ -2,400,000
Sales $ 3,200,000 $ 3,200,000
Variable Expenses $ 1,800,000 $ 1,800,000
Contribution Margin $ 1,400,000 $ 1,400,000
Fixed Expenses (advertising, salaries,etc) $ 700,000 $ 700,000
Depreciation $ 300,000 $ 300,000
Net Operating Income $ 400,000 $ 400,000
Add Back Depreciation $ 300,000 $ 300,000
Cash inflow from reduced labor cost $ 700,000 $ 700,000
Cash inflow from the sale of the machine
Cash flows $ -2,400,000 $ 700,000 $ 700,000
Discount rate 12% 12% 12%
Present Value - 2,400,000 625,000 558,036
Net Present Value $ 123,343

Net Present Value $ 123,343 Interest rate should be equal for every year

Year 0 1 2
Cash flows $ -2,400,000 $ 700,000 $ 700,000
Discount rate 12% 12% 12%
Present value - 2,400,000 625,000 558,036
Cumulative present value cash flows - 2,400,000 - 1,775,000 - 1,216,964

Discounted Payback Period 4.69 years

0.69

IRR 14.05% 0.140547125

Discounted Cash Flows PV - 2,400,000 625,000 558,036

PROFITABILITY INDEX 1.051

Year 0 1 2
Cash flows $ -2,400,000 $ 700,000 $ 700,000
Cumulative cash flows $ -2,400,000 $ -1,700,000 $ -1,000,000

Payback period 3.43 years

The Project Should Be Accepted (if) because:

NPV > 0
Profitability Index > 1
IRR > Internal Rate
Discounted Payback Period < Machine Useful Life
 3 4 5

$ 18,000 $ 18,000 $ 18,000

$ 5,000
$ 18,000 $ 18,000 $ 23,000
18% 18% 18%
10,955 9,284 10,054

be equal for every year

3 4 5
$ 18,000 $ 18,000 $ 23,000
18% 18% 18%
10,955 9,284 10,054
- 10,863 - 1,579 8,475

3 4 5
$ 18,000 $ 18,000 $ 23,000
$ 4,000 $ 22,000 $ 45,000

3 4 5

$ 1,000 $ 1,000 $ 1,000

-
$ 1,000 $ 1,000 $ 1,000
10% 10% 10%
751 683 621

be equal for every year

 3 4 5
$ 1,000 $ 1,000 $ 1,000
10% 10% 10%
751 683 621
- 683 - 0.135 621

3 4 5
$ 1,000 $ 1,000 $ 1,000
$ -170 $ 830 $ 1,830

Depreciation
Di-Add Back karena sebetulnya uangnya gak kemana mana

3 4 5

$ 3,200,000 $ 3,200,000 $ 3,200,000

$ 1,800,000 $ 1,800,000 $ 1,800,000
$ 1,400,000 $ 1,400,000 $ 1,400,000
$ 700,000 $ 700,000 $ 700,000
$ 300,000 $ 300,000 $ 300,000
$ 400,000 $ 400,000 $ 400,000
$ 300,000 $ 300,000 $ 300,000
$ 700,000 $ 700,000 $ 700,000
 $ -
$ 700,000 $ 700,000 $ 700,000
12% 12% 12%
498,246 444,863 397,199

be equal for every year

3 4 5
$ 700,000 $ 700,000 $ 700,000
12% 12% 12%
498,246 444,863 397,199
- 718,718 - 273,855 123,343

498,246 444,863 397,199

3 4 5
$ 700,000 $ 700,000 $ 700,000
$ -300,000 $ 400,000 $ 1,100,000