AKUNTANSI MANAJEMEN

MINGGU 9
Bahan Kajian:
Analisis Biaya Volume Laba: Alat Perencanaan Manajerial

Sub CPMK:
Mahasiswa mampu mempresentasikan & menganalisis
perhitungan titik impas dalam unit & penjualan untuk single
produk & multi produk dan menyajikan secara garis hubungan CVP
serta dampak perubahan variable CVP
Referensi:
1. Don R. Hansen & Maryanne M. Mowen, Management Accounting, South-
Western, 8th ed, 2009.
2. Ronald W. Hilton, Mangerial Accounting, 7th ed., 2008, Mc. Graw Hill.
CHAPTER Cost-Volume-
Profit
Analysis: A
Managerial
Planning Tool
Using Operating Income in CVP Analysis

Narrative Equation

Sales revenue
– Variable expenses
– Fixed expenses
= Operating income
Using Operating Income in CVP Analysis

Sales (1,000 units @ $400)

$400,000
Less: Variable expenses

325,000
Contribution margin

$ 75,000
Less: Fixed expenses
Using Operating Income in CVP Analysis
Break Even in Units

0 = ($400 x Units) – ($325 x Units) – $45,000

$400,000 ÷ $325,000 ÷
1,000 1,000
Using Operating Income in CVP Analysis
Break Even in Units
0 = ($400 x Units) – ($325 x Units) – $45,000
0 = ($75 x Units) – $45,000
$75 x Units = $45,000
Units = 600 Proof
Sales (600 units) $240,000
Less: Variable exp. 195,000
Contribution margin $ 45,000
Less: Fixed expenses 45,000
Operating income $ 0
 Achieving a Targeted Profit
Desired Operating Income of $60,000
$60,000 = ($400 x Units) – ($325 x Units) – $45,000
$105,000 = $75 x Units
Units = 1,400
Proof
Sales (1,400 units) $560,000
Less: Variable exp. 455,000
Contribution margin $105,000
Less: Fixed expenses 45,000
Operating income $ 60,000
 Targeted Income as a Percent of Sales Revenue

Desired Operating Income of

15% of Sales Revenue
0.15($400)(Units) = ($400 x Units) – ($325 x Units) – $45,000
$60 x Units = ($400 x Units) – $325 x Units) – $45,000
$60 x Units = ($75 x Units) – $45,000
$15 x Units = $45,000
Units = 3,000
 After-Tax Profit Targets

Net income = Operating income – Income taxes

= Operating income – (Tax rate x Operating income)
= Operating income (1 – Tax rate)

Or

Net income
Operating income =
(1 – Tax rate)
 After-Tax Profit Targets

If the tax rate is 35 percent and a firm wants

to achieve a profit of $48,750. How much is
the necessary operating income?
$48,750 = Operating income – (0.35 x Operating income)
$48,750 = 0.65 (Operating income)
$75,000 = Operating income
 After-Tax Profit Targets
How many units would have to be sold to
earn an operating income of $48,750?
Units = ($45,000 + $75,000)/$75
Units = $120,000/$75 Proof
Units = 1,600 Sales (1,600 units) $640,000
Less: Variable exp. 520,000
Contribution margin $120,000
Less: Fixed expenses 45,000
Operating income $ 75,000
Less: Income tax (35%) 26,250
Net income $ 48,750
Break-Even Point in Sales Dollars

First, the contribution margin

ratio must be calculated.

Sales $400,000 100.00%

Less: Variable
expenses 325,000 81.25%
Contribution
margin $ 75,000 18.75%
Less: Fixed exp. 45,000
Operating income $ 30,000
 Break-Even Point in Sales Dollars
Given a contribution margin ratio of 18.75%, how
much sales revenue is required to break even?
Operating income = Sales – Variable costs – Fixed costs
$0 = Sales – (Variable costs ratio x Sales)
– $45,000
$0 = Sales (1 – 0.8125) – $45,000
Sales (0.1875) = $45,000
Sales = $240,000
 Relationships Among Contribution
Margin, Fixed Cost, and Profit

Fixed Cost = Contribution Margin

Fixed Cost

Contribution Margin

Revenue

Total Variable Cost

 Relationships Among Contribution
Margin, Fixed Cost, and Profit

Fixed Cost < Contribution Margin

Fixed Cost Profit

Contribution Margin

Revenue

Total Variable Cost

 Relationships Among Contribution
Margin, Fixed Cost, and Profit

Fixed Cost > Contribution Margin

Fixed Cost Loss

Contribution Margin

Revenue

Total Variable Cost

Profit Targets and Sales Revenue
How much sales revenue must a firm generate to
earn a before-tax profit of $60,000. Recall that
fixed costs total $45,000 and the contribution
margin ratio is .1875.
Sales = ($45,000 + $60,000)/0.1875
= $105,000/0.1875
= $560,000
 Multiple-Product Analysis
Mulching Riding
Mower Mower Total
Sales $480,000 $640,000 $1,120,000
Less: Variable expenses 390,000 480,000 870,000
Contribution margin $ 90,000 $160,000 $ 250,000
Less: Direct fixed expenses 30,000 40,000 70,000
Product margin $ 60,000 $120,000 $ 180,000
Less: Common fixed expenses 26,250
Operating income $ 153,750

BEP = Sales - var. exp - fixed. exp - adm exp

 Income Statement: B/E Solution
Mulching Riding
Mower Mower Total
Sales $184,800 $246,400 $431,200
Less: Variable expenses 150,150 184,800 334,950
Contribution margin $ 34,650 $ 61,600 $ 96,250
Less: Direct fixed expenses 30,000 40,000 70,000
Segment margin $ 4,650 $ 23,600 $ 26,250
Less: Common fixed expenses 26,250
Operating income $ 0
The profit-volume graph portrays
the relationship between profits
and sales volume.
 Example
The Tyson Company produces a single product
with the following cost and price data:
Total fixed costs $100
Variable costs per unit 5
Selling price per unit 10
Profit-Volume Graph (40, $100)
I = $5X - $100
Profit $100—
or Loss 80—
60—
40— Break-Even Point
(20, $0)
20—
0— | | | | | | | | | |
- 20— 5 10 15 20 25 30 35 40 45 50
- 40— Loss Units Sold

-60—
- 80—
- 100
— (0, -$100)
The cost-volume-profit graph
depicts the relationship among
costs, volume, and profits.
 Cost-Volume-Profit Graph
Revenue
Total Revenue
$500 --
450 --
451 --
1 00) Total Cost
452 --
f i t ($
453 -- Pro
250 --
Variable Expenses
200 -- ($5 per unit)
150 -- Break-Even Point
454 -- (20, $200)
50 -- Loss Fixed Expenses ($100)
0 -- | | | | | | | | | | | |
5 10 15 20 25 30 35 40 45 50 55 60
Units Sold
 Assumptions of C-V-P Analysis
1. The analysis assumes a linear revenue function and a
linear cost function.
2. The analysis assumes that price, total fixed costs, and
unit variable costs can be accurately identified and
remain constant over the relevant range.
3. The analysis assumes that what is produced is sold.
4. For multiple-product analysis, the sales mix is assumed
to be known.
5. The selling price and costs are assumed to be known
with certainty.
 Relevant Range
$

Total Revenue

Total Cost

Units
Relevant Range
Alternative 1: If advertising expenditures increase by
$8,000, sales will increase from 1,600 units to 1,725 units.
BEFORE THE WITH THE
INCREASED INCREASED
ADVERTISING ADVERTISING
Units sold1,600 1,725
Unit contribution margin x $75 x $75
Total contribution margin $120,000 $129,375
Less: Fixed expenses 45,000 53,000
Profit $ 75,000 $ 76,375
DIFFERENCE IN PROFIT
Change in sales volume 125
Unit contribution margin x $75
Change in contribution margin $9,375
Less: Change in fixed expenses 8,000
Increase in profits $1,375
Alternative 2: A price decrease from $400 to $375 per
lawn mower will increase sales from 1,600 units to 1,900
units.
BEFORE THE WITH THE
PROPOSED
PROPOSED
Units sold1,600 1,900 CHANGESCHANGES
Unit contribution margin x $75 x $50
Total contribution margin $120,000 $95,000
Less: Fixed expenses 45,000 45,000
Profit $ 75,000 $50,000

DIFFERENCE IN PROFIT

Change in contribution margin $ -25,000

Less: Change in fixed expenses --------
Decrease in profits $ -25,000
Alternative 3: Decreasing price to $375and increasing
advertising expenditures by $8,000 will increase sales from
1,600 units to 2,600 units.
BEFORE THE WITH THE
PROPOSED
PROPOSED
Units sold1,600 2,600 CHANGES
CHANGES
Unit contribution margin x $75 x $50
Total contribution margin $120,000 $130,000
Less: Fixed expenses 45,000 53,000
Profit $ 75,000 $ 77,000

DIFFERENCE IN PROFIT

Change in contribution margin $10,000

Less: Change in fixed expenses 8,000
Increase in profit $ 2,000
 Margin of Safety
Assume that a company has the following projected income statement:
Sales $100,000
Less: Variable expenses 60,000
Contribution margin $ 40,000
Less: Fixed expenses 30,000
Income before taxes $ 10,000
•

Break-even point in dollars (R):

R = $30,000 ÷ .4 = $75,000
Safety margin = $100,000 - $75,000 = $25,000
Degree of Operating Leverage (DOL)
•DOL = $40,000/$10,000 = 4.0

Now suppose that sales are 25% higher than projected. What is
the percentage change in profits?

Percentage change in profits = DOL x percentage change in

sales
Percentage change in profits = 4.0 x 25% = 100%
Degree of Operating Leverage (DOL)
Proof:

Sales $125,000
Less: Variable expenses 75,000
Contribution margin $ 50,000
Less: Fixed expenses 30,000
Income before taxes $ 20,000
 CVP and ABC
Assume the following:
Sales price per unit $15
Variable cost 5
Fixed costs (conventional) $180,000
Fixed costs (ABC) $100,000 with $80,000 subject to ABC analysis
Other Data:
Unit Level of
Variable Activity
Activity Driver Costs Driver
Setups $500 100
Inspections 50 600
 CVP and ABC

1. What is the BEP under conventional

analysis?

BEP = $180,000 ÷ $10

= 18,000 units
 CVP and ABC

2. What is the BEP under ABC analysis?

BEP = [$100,000 + (100 x $500) + (600 x

$50)]/$10
= 18,000 units
 CVP and ABC

3. What is the BEP if setup cost could be reduced to

$450 and inspection cost reduced to $40?
BEP = [$100,000 + (100 x $450) + (600 x $40)]/$10
= 16,900 units
The End