Decision -

txlakiy .
fe
Part 2
 e
Analysis pasta
.

A formulas
(aest Volume Profit ? C Margin
ng ,
-

Cost Statement
Nfarginal

Sales xxx

¥xx
-0 VC ( xxx )

-0 FC C xxx )
-

xxx
Net
:

Profit
-
=

.
=
 #
toat
.

MEILI
⇒ sp :

toad

::÷÷÷÷÷÷
5 Anfhf

r£÷nk÷
sp sp a.

.fr#xiooSKB-iners
:

DubIi.lQ000@p77Iooohmpfn.g
or
snowfall
- A 19000

:
:a:÷÷ ÷
25L
.
Png
.it#saeftxioo--
 Spies
-11
1-
¥4
-

Variable →
cost

Recovery
at
fcHf%t÷us
Fixed
cost

FC thru
Recovery of

cards
Net Profit
I
-

M them
MOS

.gg?fePaenp+
of
=

couth Changing Safety )

.ae/gthaepgFEsuuibfcoutip.u.J
⇐
.

,
Netprofit

#
Mos
Bep FI

¥i¥
⇐
: .

Value .
ratio
 Sales
I
, -

VC Couth
=
,=

=
Np
FE =

Mos :NP_
BEP :

FI
Couth
cont
pin pm
. .

or or

re Np
- -

plvratio pyvratio
QE
opening ⇐
6000
stock

It

1-
Planned Expected
pdn .

sales
- -

280004
94000 u

WEB
Sp : 10 C c. y .

VC :
HI
5 6

fc :
Rs . 86,0001 - V
=

GE BEI
 BIP FI

(
-
-

couth
f.
u .

56000
=

-
F

÷¥¥÷¥÷i
560007M¥
86,008-39000
vc

C
-
:S
BIP :

recompute,
-

Contnpu .

5pm
:

Carmtpdn )
.

× 6000W
- =

Rs 30,000
4
= .

=
14000
units
-
 Pharmaceutical Co
GEE
.

-2.4 .
c. Y .

Stk 30,000
Opening
.

Foxes .

Products 130,000 73 130,00031

-

.
.

Expected fall 159000 B

Rs .

fc 40µW 5720,000
. -

(40×130,00013) ⇒
(5208000+1079)
=
5209000

sp -
100

VC
hop "
50p.cn
.

got
RID
 REI BII ⇐ FL
couth
pie
.

Current FC =
5720,000

€oc
⑦ 180,00
Reffing ⇐

)
(
60

)
czgooox 100

Fc
Remaining :
3929000
=

[ To be scammed
current pdn )
from
.

Turret
(100-50)
:

coffin
-

Sales Refined 78,400

:

=
faxes
 I

BIP
=

30,000W + 78,400k
Sale of Sale
of
c. y CY
ofngstk pdn
.
.

.
 Abs 's vs .

Marginal .

Absoph Marginal .

Main between Absosph 4

difference
Treatment of feud
"

is
Marginal Costing
cost
'

Totality
FE Pargas ;;t gases
.

↳
↳ Rs .
500,000 → Rs .

500,000
iooooonib
tf
potpie
.

B
( udgeted
.

Budy
.
Pdn .

A
Impost
Valuation Stocks
of

NET
maid .

"

Variable @
"
Variable
@
§
is
toothed Mtg loft cost
.

Mfg .

"

fixed Mfg pm
.

1-
cost
( VMC
pm )
"

pm
. .

( vmctfmc )
pm pm
.

1-

#
Over -
Absorph Under

Atssosph

-22
µ

⇐:÷t÷:÷⇒÷
:
B
A
pig
I
:
1909

under -

pdn
-
 I

a-
over
pan

×E÷mf7o
Credited
a

to
Under

Debi led
A
absospl

to

PIL .
Pk .
 QE Sandeep Ltd .

④
Stk units Closing ffg ,
+
opening ⇐

produced thats Sold

40,000 u t ¥ t
170,000W
⇐

209000 u

(Mfg ./pdn ,
UNI
-
=

Cae
of

fixcd9ohdf
Budyfotn
Budy
Pdn
=
8090002
209000
a
= Rey
=

( Normal yacht
ohds
absoprin of fixed
Under
WINB.pt#00uDo00APdn:l7ggo0ooIqp.u.--fs.l2oI
: .

"
DE Pk cabsospt ) .

⇐
particular Rs .

particular Rs .

%
560,000 By Sales

:O
¥
50,09000

( 200000 u @ Has)
TO
DM
Gtf 000

(179000×4)

:i÷E
-

By closing
to (9)
V.
DL 689000 Stk

,¥÷yh
3349000

Cohl
=

he 2) f. poh) 149000

aimag
( V.
pop -1
I

To fpoh 680,000 pm
.

.
p.m

Folds 120,000
of
.

4%1%0×1755 109000 I
=

Ad
re fixed 109000
(14×19020)
.

To Van SAD 300,000

he fixed CID Iago

To Net Profit 1380,000

 Plh Ak C Marginal ) .

to of Stk Sales sgogooo

By
:

409000
.

(40000×10)

%
"

he DM ( 4) 6 ooo 100,000
he DL Lu ) ④ 0004
gggooo
the Vote (2) x 10 )
340,000
he Foh 800,000
-

he Nadu
16,00
-

the FAN .

lagoo

the USD 30,00

he f- SD 20,00
-

Net Profit :
1509000
I
 Recede
Nf Is ! ) :
1380,000

Stk ⑦ 169000
opening
(560,000 -

409000)

o¥⇒*o
Do
.
side
M

item

lower
( Mage

ie

in
-

opening
)

marginal
towards
stk

4
:

Side
Isopod

item
Aff

is
,

is Dr will
going Np
If
are

Marginal low ;
.

we
INCREASE
.

←
 OI ttgoohodudt

#
a

E¥¥÷t¥
¥r
.

/ /
Klien .

Hoot 18007

Reef
2%07%007 BI :
BE
=

HEA SEA TEA 30€

M⑨ g③a 260A
←
+ 220A
480A
 The SP is in Tons &
① given
Note
Vc is in terms acres
given of .

So it Is to convert either
of them
necessary
into a common denomination to make Ft

Comparable
.

"
"

. .
we will convert SPIT on into

SPI
"
"

Acre
=

② AI

-
Are 1A : 507
-

250A
occupied
:
×
250A
,g
:

fieldfare
:

adf.tw:12500#IA--5OT8p/@sp/Ix
2001T
↳ T.io/cse
⑨ statement of Profit for the Current fear .

Particulars At AR Bt 22

Yield / acre so 40 45 GO

X
Jp / Ton 20 250 300 270

SPI Acre 10,000 10,000 13,500 16,200

① VC¥re 4700 5100 5950 6600

@eedstPesti.t '

fest .
tenet . t

DW )

960.0
⇐ Contribution 5300 4900 7550
per Acre
Ty I I
Rank -

NO
-

Acres 250
20 30 250
× of

Total Cork 1325000989000 2265000 240,000

↳ 6979000
5376,0¥ 0°°
④ Statement
of Profit based an

market commitment

will
In this case we
first
satisfy the Hinman Market commitment

it then distribute in the hand

having
higher centre .

-40
-
II -

AE BI -

BE
20007 20007 1800T ISNT
45 60
SOTA 404A ÷

40A 30A
Min 40A 50A

M
'

-1360A +480ft
Eo
-

A HII:( 250-120 -

131-1132 : 300-1250
-

SO ) do -
30

360A
=

-→ -

480A
C High)
-

At : couth I Are C thigh ) .

BRO : Continue
 ④ Profit St Cmarketing com )
.

AI EI BI BE

510A
400A 50A 40A

XII
5300ft
: 49001A 75501A 96001A
-14896,000

Toted
:

212000+245000-1 302000

,
7663000
5378000

M ¥000
 If No Market Commitment d

No Land
compulsions
-

we will choose the hand

with Highest couth

#
/ acre .

A
ie .

choose hand -

132
=

chef
.ae
1000 Acre x CIA = 9600

As
couth ⇐ .
9600,000

⑦ FC
.

a
Is .

(537-6,000)

Me
:

4¥
I
 132
=

BEP .

FC BEP FI
.
= = I
-

tinged
Couth
Here

linvahu.JP/Vratio
=
5376,000

96001A
-
5376,000
59.251
-
.

(9600/1620)
=
560A
=

'
" '

:*
c. .ae ,⇐*ctnchnts )
.
.
560 ¥÷n A

×
Sppn x162w_

90-72,000 -
EE Spare paste
=

X. Ltd .

Particulars Sp .
p .

⑦ Sp .p .

Sp 145 115

-0 Costs .

do so
Alloy
.

(12.5/19×1.6) (12.419×1.6)

.
Mc - A df so

(0.6/80) CO .

asked
.
Mc -

B fo 55

(100×0.5) (100×055)

Couth 27 20
pin
.

No w 6666W 8125W
x of
-

total -

faith 179,982 169,500

It
Rank I
 Pen
-11
I

Hid ¥ Eady
250 f- 200
f- 350

Nibs Eff Bodies

I
Koos ace EL
I
350
Rto
 Spare past Spare -
pg
F ④

8195L
Alloy
+

8125€
6666C
M¥ -

A 16000W

In
.tt#-f.GSIo:-oIDGsoo:-o.sD
C.4000ha LIB
A her =
025L

1-
:
) = -40004 )

9000W 8181 u

Max pdn
.

6666W 8125
U
possible
=

=
⇒
Price of SPCA) :
145
① Discount @
poof .
: ( 14.55

Net
Sf 305

-0 Costs Go -148T i
118
so
) -

Pngit : 12.5
x
6666
-

83,325
For Miz :

④ ✓ 79020
shot

450hm
1167
6666A x o .

1167×60/4
= 3333kW Utilised -

tvaildsiwhf
total .

153,345
- M .

Under -
:
-
utilise
hey
.

Recons "

Not a feasible office

 Cost -

Indifference

parent
=
 Risk Return

A IOT 157
by
.
.

15T 107
§ 31
.

Risk Return

§ C
IoT 157 .

G D 5T 207 .

Risk Return

X
4
E
'

IoT 157 .

G F 12T 20%
EE FE
E
Mach .
A Rs
3pm
.

ftzooooo

Mach B. 350,000
13 ps.5p.ie
. .

VI FE

Mach .
C :
Rs .

3pm
.

Is 309000

Rs
Mach .
D : Rs .
2. Man .

209000

E II

④
Mach E

18321000
.

Mach .
f B.409000 2 Rs .

= I
 c
P .

.
Cost Indifference
Point
.

A Pdn Units ; where

of
.

point

Total Total Cost

Coste,
⇐

the no .

§ of
units be ⇐

¥7
-
I
92 409000
3kt 300,000 I +
c-

IN =
700,000

K =
100,000 units .

Fcp FCE
-

(
EP
-
(AAgr
Diff VC
of
 UP =
100,000 unit

@ 100,000£ choosier
total Cost will be Same
=

@ Clp :
Choose a .tw options

Pdn )
5-
C
option with
.

choose
elf :

higher Fc

CHI) choose option with

,
< UP Lower Fc
 Cip
=

Production Decision
= I

@ CIP Choose G- ther

options

> CIP Fe
Higher

< up honor FC
 II

C-
FA
=
= ←

dc-couvt-fptannfanuds.tt
FC 15,000 45,000
: 125,000

VC :
240 140 40
pu
.

pm
.

pm
.

-530cg
① Manuel ME At

CIP
39%1=390
:

,%ftgf#
⇐

>
308 : SA

: Marvel
=
② SA RE FA

I 25000-45000
-
=
800W
=

IMO -

40

> 800 u : FA

< 800 u :
SA :

③ Mound is FA

1%00-15600 =
see
⇒

> Kou : FA .

< 550W :
Niland .
.

=
 Statement to the up
Analyse

¥
⑥
→ ①
tessztotoanu
SA →
②
: VINNIE
I

→
③

SA → ①

SIG
②
FETTES
:

.
:
: ¥8
ms
than SA ①
③ More →

④
: SA
550 but :
SA →

less than 800 FA → ③

⑨ Mose than 8A→①

800
:

fA→② FA
rn→⑦

Less than 300 :

Nlanwd .

7300 Mto 800 : 8A

> 800 :
FA
 BE Golden pet C mtg of
.

Plastic
potties )
-_
.

Ttf⇐
ihr . = too
patties

Sp =
0.5 FI '

: Rs -200,000

Ribar
VC = 002
-
Total
couth =
0.3
.

10,000
capacity
.

- mchrs .

New
Gf :3
40€95
:
Customer → Ihr =

I
VC :
2.4

Caya )
.

Couth :
0.6
I
-0
C 100,19% )
① total Available
⇐ 10,000mg
hours
I
1-

7500 9500kW
hrs
Toys
Pottles =

I
Ihr =
40T

↳.gµq§÷ohnIoqo
we Shud accept
H :
3

Tofte project
-

① Vc :
a. y
=
-

= Couth :
0.6

X 100,000T
:B 00

Etf 2
Edge
 If
demand
for >
Demand for
Bottles Toys .

As be in the
can seen
given
situation ,
the total hours are

limited to the overall

as
compared
demand Paetus
of
& Toys .

So we will decide based on

Higher Couth
/ limiting factor
Bodies Toff
Thr : 10013 40T

↳
X O .
3 x O . 6
-

solar
-

241W
⑦
I
Code →

In the Geenasio Bottles is

given ; Mfg
giving us a Better Couth 1hm .

4 hence
Bartle mtg will be given priority .
 Taffy
1-

Mfr it

2.4
Subcontract
inheuse =

Sp :
z
fp : 3

Vc : VC : 2.8

Fc :
20,000 FC : O

a-
CLI .

Doff of FC
⇐
20,000-0%8-9.4
¥gvc
50,000
=

⇒
units
=
'

> Pdn sgooou : Mfr srnhouse

Sub contract
L
Pdn 50,000W
.

:
At what will we
pdn capacity
Jnhouse ?
produce
@ 759000 units
I

GOT
Ihr
.
=

50,000T
hours

¥
able have
Sf fo
we are

Whans
Spare
;
it is
justified to
capacity =

produce Jnhonse .

=
 psdvf a

⑨
total 10,000
hrs
¢6oohrsx40T/h)
=

Mch .

mchrs
=

1-
"
I
hrs 64000T
$600 →

pane Fanbase)
µ

⇐
Motte Mfg → 36000T
.

÷
C Sub Contract
-

::¥ . : .
=
.
 Scenario
Overall Bottle Mfg
:
.

-840000
I

B X O .
3 =
259,000
② Fe =

200,000
¥00
M
=

TEA
ahem
"

3840

⑦ re 29000
-

Np :
18,400
=
=

⑦ futsal
-

36000×0.2 =

720£
C 3-z.gg
B. 77,6001 -

@wrallIfCPoedicD.o )
2000+18400 +7200
→ themed :
Reality :

T
'

poetized Spain
900,000 u 1000 hrs .

I
C of ten
capacity
9000k Ibo
than was )
occupied we will

Subcontract
270000
fully
aoooiiogooauaeh
.

NCAA
:

79000
④ MCTOYD :
sgooo

toys
-

dog
>

todays 9¥
: .

;%
:
"
 Total of ( predict) .
77,600

Total of ( Rallo) :
99000

Prediction
Cost Error :
12,400
of I
-_
 (

CE Bal Bharti Public School

Students 30 Go 90 120 150

- Stu .
she G- Stu .

St .

I Variable
=

Breakfast (5)
-
lunch Clo)

feels
Ent )

80009
.
.

abku¥¥
ED
.

Tea
r
VC :@
I .
Sean
-
5 7€00
Rent I Bus
24000
⑧→l⑧
.

&so )
Spe permit
-
.

fee Go )
.

Teacher Goo )
Allowance

Svc :

It Fixed Cost :

Blackout .

fee
.

Prizes to St .

✓
FC :
5000 ④ 1900 3300 -
- -

.
No .

of Students
Average cost 63.330 55 43.334416 39.33
 Bep =

FI
comet
=

95
500+8000
( sp -
ve )

(45-20)
whenever there is Semi Variable
cost the overall pep will
,

with the in SVC

change change
.

At such
trigger point
every
,

where AE is will
changing ; we

have to Recalculate the BEP

; giving
to Multiple pep
"
rise the
concept of
u
.

=
fwdsaerohichsvcischayiyjnaltipkl.SI
SHI 10¥50
116
pop
I
5,21¥ 84
students .

St -

re
.

:Ecs:¥ET*⇒÷¥
51-83 : loss lol -

HE : loss

the
Not in
116 :Be
84 :
BE
Farge
.

Raft
85--10 Profit 117 IN
-
:

loss
:

Hence

for feeraye
I
so
of
-

student
 final Conclusion

-1
- .

- 50 .

.
Lots

51 -
83 :
toss

84 :
BE

ST -
ta :
Profit

lol - I 15 :
loss

116 :
BE

117
profit
-
:
 #-
.

0¥ Friend
-

D 14800 Sal .

will become
Cost the
for puniness .

CEI
D Safe

opportunity
600 -

900C got - IROC

.se/csp:Eo/cD.tEuyH&c-71000C -

sp .

yfmmbig.es#uptotEoo/m-7fo?ooIo

133
190
Ciao - s

⑨
 ③ 39£00
:

Pasttmk
Irrelevant Cost

HI
HE Cortex
Center
pin
.

600 -

HI - 90 900-1000 > 1000

4800-170000
→
110 110 80

(220-140) Cao -

PD

-600-679
680 770
1 gate

87-(250-140)
E
14800600002,1148001720000
±
Out
less # 76g
of
71000
-
:

: loss safe
• so : BE I
770 :X 900-1000
A
681-750 Puff
Profit
:

, .

go
loss
ipnyt = =
 fit =

600 -

679 : has
680 :
BE

681 - 750 :
M

AT -

769 :
loss

770 .

.
BE

771 -90 .

.
M

900 -
1000 :
loss

> 1000 :
M
- -