【正文】 $250,000) B r e a k e v e n s a l e s 4 0 0 un i t sA c t ua l s a l e s 5 0 0 un i t sS a l e s 2 0 0 , 0 0 0$ 2 5 0 , 0 0 0$ Le s s : v a r i a bl e e x pe ns e s 1 2 0 , 0 0 0 1 5 0 , 0 0 0 C on t r i bu t i on m a r gi n 8 0 , 0 0 0 1 0 0 , 0 0 0 Le s s : f i x e d e x pe ns e s 8 0 , 0 0 0 8 0 , 0 0 0 P r of i t B T $ 2 0 , 0 0 0$ 58 Quick Check ? Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $ and the average variable expense per cup is $. The average fixed expense per month is $1,300. 2,100 cups are sold each month on average. What is the margin of safety? a. 3,250 cups b. 950 cups c. 1,150 cups d. 2,100 cups 59 Quick Check ? Coffee Klatch is an espresso stand in a downtown office building. The average selling price of a cup of coffee is $ and the average variable expense per cup is $. The average fixed expense per month is $1,300. 2,100 cups are sold each month on average. What is the margin of safety? a. 3,250 cups b. 950 cups c. 1,150 cups d. 2,100 cups Margin of safety = Total sales – Breakeven sales = 950 cups = 2,100 cups – 1,150 cups or 950 cups 2,100 cups Margin of safety percentage = = 45% 60 The Concept of Sales Mix ? Sales mix is the relative proportions in which a pany’s products are sold. ? Different products have different selling prices, cost structures, and contribution margins. Let’s assume Wind sells bikes and carts and see how we deal with breakeven analysis. 61 Multiproduct breakeven analysis Wind Bicycle Co. provides the following information: B i k e s C a r t s Tot a lS a l e s 2 5 0 , 0 0 0$ 100% 3 0 0 , 0 0 0$ 100% 5 5 0 , 0 0 0$ 1 0 0 . 0 %V a r . e x p. 1 5 0 , 0 0 0 60% 1 3 5 , 0 0 0 45% 2 8 5 , 0 0 0 5 1 . 8 %C ont r i b. m a r gi n 1 0 0 , 0 0 0$ 40% 1 6 5 , 0 0 0$ 55% 2 6 5 , 0 0 0 4 8 . 2 %Fi x e d e x p. 1 7 0 , 0 0 0 P r of i t B T 9 5 , 0 0 0$ S a l e s m i x 2 5 0 , 0 0 0$ 45% 3 0 0 , 0 0 0$ 55% 5 5 0 , 0 0 0$ 1 0 0 . 0 %$265,000 $550,000 = % (rounded) 62 Multiproduct breakeven analysis B i k e s C a r t s Tot a lS a l e s 1 5 8 , 7 1 4$ 100% 1 9 3 , 9 8 3$ 100% 3 5 2 , 6 9 7$ 1 0 0 . 0 %V a r . e x p. 9 5 , 2 2 8 60% 8 7 , 2 9 2 45% 1 8 2 , 5 2 0 5 1 . 7 %C ont r i b. m a r gi n 6 3 , 4 8 6$ 40% 1 0 6 , 6 9 1$ 55% 1 7 0 , 1 7 7 4 8 . 2 %Fi x e d e x p. 1 7 0 , 0 0 0 P r of i t B T 177$ S a l e s m i x 1 5 8 , 7 1 4$ 45% 1 9 3 , 9 8 3$ 55% 3 5 2 , 6 9 7$ 1 0 0 . 0 %Rounding error Fixed expenses CM Ratio Breakeven sales = $170,000 = $352,697 = 63 Assumptions underlying CVP analysis ? The behaviour of total revenue is linear ? The behaviour of total costs is linear over a relevant range – costs can be categorised as fixed, variable or semivariable – labour productivity, production technology and market conditions do not change – there are no capacity changes during the period under consideration 64 Assumptions underlying CVP analysis ? For both variable and fixed costs, sales volume is the only cost driver ? The sales mix remains constant over the relevant range ? In manufacturing firms, levels of inventory at the beginning and end of the period are the same . sales in units = production in units 65 Treating CVP analysis with caution ? CVP analysis is merely a simplified model ? The usefulness of CVP analysis may be greater in less plex smaller firms ? For larger firms, CVP analysis can be valuable as a decision tool for the planning stages of new projects and ventures 66 END OF LECTURE 2 。 $200 per bike Q = 400 bikes 28 Equation Method We can also use the following equation to pute the breakeven point in sales dollars. Sales = Variable expenses + Fixed expenses + Profits X = + $80,000 + $0 Where: X = Total sales dollars = Variable expenses as a % of sales $80,000 = Total fixed expenses 29 Equation Method X = + $80,000 + $0 = $80,000 X = $80,000 247。1 Lecture 2 Topic 3: CostVolumeProfit Relationships MAA 703 Management Accounting 2 COST VOLUME PROFIT (CVP) ANALYSIS ? Shows how alternate actions can affect profit. ? Focuses on the relationship between cost, volume and profit. ? It enables us to: (1) determine the breakeven level of production, and (2) predict how changes in the level of production, selling price or costs will affect profit 3 T o t a l P e r U n i tS a l e s ( 5 0 0 b i k e s ) 2 5 0 , 0 0 0$ 500$