4.13 Accounting 211

# 4.13 Accounting 211 - Accounting 211 Tuesday April 13th...

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Accounting 211 Tuesday, April 13th, 1999 Announcements: Exam #3 Results: Range = 13-100, Average = 67.4%, Average to date = 68.2% At this point, A = 88, B = 78, C = 68, D = 58 Lecture notes: Example:

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Sales 800,000 - VC - 600,000 CM 200,000 - FC - 150,000 Net Income 50,000 Activity level = 50,000 units Sales Price per Unit
800,000 / 50,000 = \$16 VC per Unit 600,000 / 50,000 = \$12 CM per Unit 200,000 / 50,000 = \$4 What is the change in net income if sales were to increase by 100 units? 100 x 4 = \$400 Change in sales = 1,600 Change in VC = 1,200 Change in CM = 400 Change in FC = 0 A customer has placed an order for 200 units at \$14 per unit. What is the change in net income as a result of the order?

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Sales price 14 - VC - 12 200 x 2 = \$400 CM per unit 2 Chapter 20 Benefits of Budgeting It requires all levels of management to plan ahead It provides objectives for evaluating performance It provides information regarding future cash flows It functions as a control device Budgets:
Sales budget Production budget Materials purchase / usage budget Direct labor budget Factory overhead budget *see page 872 Example: Budgeted December Sales = 12,000 units

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