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If you are
clever than
teachers
If you are
not...
Have to
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AN EASY SOLUTION
BOARD
OF
DIRECTORS
AREA OF OPERATION
Dhaka
Chittagong
Rajshahi
Brisal
Khulna
Rangpur
Sylhet
Maymensingh
PRODUCT RANGE
Kids
Bicycle
Men
Bicycle
Women
Bicycle
Cycling
helmet
Navigatio
n device
KIDS BICYCLE
Features:
Easily handling
Smooth running
Strong
supportive wheel
Comfortable
MEN BICYCLE
Features:
Strong body
Easy moving
Hydraulic
break
Front & back
light
Gear system
CYCLING HELMET
Why our helmet?
Safer
Easy portable
Strongest
Well vantilated
NAVIGATOR
Features :
Navigation
service
Speed meter
Solar charger
Antiharrasement key
GPS facility
PULL SCHEDULING
Variable
cost
Fixed cost
Product
cost
Direct materials:
8,000,000
8,000,000
Direct labor
5,000,000
5,000,000
Manufacturing overhead
3,000,000
3,000,000
Period
cost
Administrative cost
700,000
700,000
Selling cost
300,000
300,000
Advertising cost
500,000
500,000
Sells commission
500,000
500,000
Depreciation
500,000
Insurance cost
500,000
500,000
500,000
fixed cost
2.5m
3000
Number of unit
Cost
variable cost
5833
0
1
Unit
Amount(tk.)
Beginning Inventory
1,000,000
7,000,000
8,000,000
1,300,000
6,700,000
(+)Direct labor
5,000,000
(+)Manufacturing Overhead
3,000,000
Amount(tk.)
8,000,000
14,700,000
Amount
Amount
14,700,000
2,500,000
17,200,000
1,200,000
16,000,000
4,000,000
20,000,000
2,500,000
17,500,000
Amount(tk.)
Sales
(-)Variable cost:
Direct material
Direct labor
Manufacturing overhead
Sales commission
Others cost
22,500,000
6,700,000
5,000,000
3,000,000
500,000
2,300,000
Contribution margin
(-)Fixed cost:
Administrative cost
Insurance cost
Depreciation cost
Advertisement cost
Net operating income
Amount(tk.)
17,500,000
5,000,000
1,000,000
500,000
500,000
500,000
2,500,000
2,500,000
6-32
CM Ratio
100%
78%
22%
In dollar sales=
Fixed expenses
CM Ratio
= tk. 2,500,000/0.2222
= tk. 11,245,000
Total revenue
Total sales
Variable cost
2.5m
Fixed Expense
1500
Unit sales
WHAT IF ANALYSIS
CVP ANALYSIS
The average selling price of a of a bicycle is tk.7500
and the average variable expense per bicycle is tk.
5833 . The average fixed expense per year is
tk.2.5m. Using the formula method we determine the
sales dollars that must be generated to attain target
profits of tk.3m per year.
Profit = (Sales variable expense) Fixed expenses
3,000,000= Sales 17,500,000 2,500,000
Sales = tk.23,000,000
Per unit sales = 23000,000/3000 Units = tk.7,667
NEW PROMOTION
ANY
QUESTION
??