10014_031210_18 - 71,750 53,000 b = 2.50 12,500 5,000...

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III. Contribution Income Statement Traditional Contribution Organized by function Organized by behavior Sales Sales - COGS ___ (includes FOH, DM, DL, VOH) - VC Gross Profit VCOG - Op. Expenses Subtotal Selling Vselling Admin. _____ Vadmin___________ Net Income Contribution margin - FC FOH FSC Fadmin____________ Net Income Ex 1: 5,000 MH 12,500 MH A 10,000 VC 25,000 B 20,000 FC 20,000 C 53,000 MC 71,750 What is the estimated “C” cost at 7,500 MH? $59,250 Y = A + b(x) (High) b(x) = 2.50 x (2,500) = 31,250
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Unformatted text preview: 71,750 53,000 b = 2.50 12,500 5,000 71.750 = A + 31,250 A = 40,500 So Y = 40,500 + 2.50(x) Y = 40,500 + 2.50(7,500) = $59,250 Ex 2: 20,000 MH 50,000 MH POHR = $2 POHR = $1.70 40,000 = TC 85,000 = TC What is the VC per machine hour of the POHR? $1.50 85,000 40,000 50,000 20,000 Ex 3: 100 units 140 units 8,000 MC 10,500 MC 5,000 FC 5,000 FC 6,500 VC 9,100 VC 6,700 MC 8,580 MC...
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