Managerial Accounting Assigment - N.C. Tan - MANAGERIAL ACCOUNTING ASSIMENT BMAC5203 Advisor Ms Bich Pham Student Nguyen Cong Tan Class MBAOUM0314-K13A

Managerial Accounting Assigment - N.C. Tan - MANAGERIAL...

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MANAGERIAL ACCOUNTING ASSIMENT BMAC5203 Advisor : Ms. Bich Pham Student: Nguyen Cong Tan Class : MBAOUM0314-K13A ID No: CGS00017289 Date : Sep 2014
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Managerial Accounting Table of Contents p age # 1. TASK 1: CVP Analysis 2 2. TASK 2: Dropping or Retaining a Product 5 3. TASK 3: Cash budget 8 4. TASK 4: Budgetary Control Systems 11 2
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Managerial Accounting TASK 1: CVP Analysis 1. Present Proposal Amount Unit Percentage Amount Unit Percentage Sales (40,000 units) $800,000 20 100% $800,00 0 20 100% Less variable expenses $560,000 14 70% $320,00 0 8 40% Contribution margin $240,000 6 30% $480,00 0 12 60% Less fixed expense $192,000 $432,00 0 Net operating income 48,000 $ 48,000 $ As variable expense be reduced by 6 USD per unit, the price per unit after in case the new equipment is purchased: 14$ - 6$ = 8$ 2. a) Degree of operating leverage: For present: ??? = ???????????? ?????? / ????????? ?????? = $240,000/ $48,000 = 5 For proposed: ??? = ???????????? ?????? / ????????? ?????? = $480,000/ $48,000 = 10 b) Break-even point in dollars: For present: ??? = ????? ????? / ?? ????? = $192,000/ 0.3 = $640,000 For proposed: ??? = ????? ????? / ?? ????? = $432,000/ 0.6 = $720,000 3
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Managerial Accounting : 20% 10% 4
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Managerial Accounting 4. Present Proposal Amount Unit Percentage Amount Unit Percentage Sales (40,000 units) $800,000 20 100% $1,200,000 20 100% Less varible expenses $560,000 14 70% $900,000 8 40% Contribution margin $240,000 6 30% $300,000 25% Less fixed expense $192,000 240,000 Net operating income $48,000 $60,000
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