【正文】 Question: How many students does the program need to break even?Costs:Revenue:AdvertisingClassroom rental (Each classroom can acmodate 15 students)Program administrationProgram director’s salaryFaculty salaries(The program will be staffed with 1 faculty member for every 5 students)Guest lecturerRoom and board per studentText and supplies per studentTuition per student$3,000$13,500$500$30,000 per classroom$15,000$20,000$20,000 per faculty member$12,000$3,200Breakeven Exercise Background26CU7122397ECAbcBOS Copyright169。 1998 Bain Company, Inc. Cost Accounting Step 1: Categorize costsAdvertising Classroom rental Program administration Program director’s salary Faculty salaries Guest lectures Room and board per studentText and supplies per student Fixed VariableStep 2: Calculate fixed costsFixed costs: $3,000 Advertising$15,000 Program administration$20,000 Program director’s salary$12,000 Guest lectures$50,000SemiVariableFirst, you must categorize costs and calculate fixed costs.Breakeven Exercise Answer (1 of 3)27CU7122397ECAbcBOS Copyright169。 1998 Bain Company, Inc. Cost Accounting Step 4: Calculate unit contributionUnit contribution = Price per unit Variable cost per unit= $13,500tuition 3,200room and board 500text and supplies $9,800Step 3: Calculate semivariable costs ClassroomFaculty10 students $30,000$40,00015 students $30,000$60,00020 students $60,000$80,000Then you must calculate semivariable costs and the unit contribution.Breakeven Exercise Answer (2 of 3)28CU7122397ECAbcBOS Copyright169。 1998 Bain Company, Inc. Cost Accounting *The most effective way to calculate the breakeven volume is to write a simple formula in ExcelStep 5: Calculate breakeven volumeBreakeven volume = For 10 students: = students with 10 students the program does not If you keep increasing the number of students by one and redoing the calculation*, you will find that the business school needs to have 15 students to break even on the executive programFixed costsUnit contribution$140,000$9,800Now you are ready calculate the breakeven volume.For 15 students:$120,000$9,800= studentsbreak evenBreakeven Exercise Answer (3 of 3)29CU7122397ECAbcBOS Copyright169。 1998 Bain Company, Inc. Cost Accounting ?Importance of cost allocation?Client example?Definitions–direct vs. indirect, fixed vs. variable–breakeven volume?Exercises–cost allocation–breakeven volume?Key takeawaysAgenda30CU7122397ECAbcBOS Copyright169。 1998 Bain Company, Inc. Cost Accounting ?A pany must know the total cost associated with the production and delivery of its good and services in order to make the right strategic and tactical decisions?Most panies lack accurate cost data by product?All costs can be broken down along two dimensions: fixed versus variable and direct versus indirect?Defining the appropriate time horizon for costs is important because fixed costs are “fixed” only for a certain time frame?Breakeven volume is the minimum amount of product that a pany must sell in order to cover its fixed costs. At breakeven volume, the pany’s operating profit is zeroBreakeven volume = Fixed costsUnit contribution = Fixed costsPrice per unit Variable cost per unitBreakeven VolumeCost Allocation OverviewTypes of CostsKey Takeaways31CU7122397ECAbcBOS Copyright169。 1998 Bain Company, Inc. Cost Accounting演講完畢，謝謝觀看