Bill French - Double SP of "C" x...

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BILL FRENCH STATUS QUO Aggregate Product A Product B Product C Full capacity 2,000,000 Volume sold 1,500,000 600,000 400,000 500,000 Unit price 7.20 10.00 9.00 2.40 Total sales 10,800,000 6,000,000 3,600,000 1,200,000 Unit VC 4.50 7.50 3.75 1.50 Total VC 6,750,000 4,500,000 1,500,000 750,000 Unit CM 2.70 2.50 5.25 0.90 Total CM 4,050,000 1,500,000 2,100,000 450,000 Fixed costs 2,970,000 960,000 1,560,000 450,000 Income 1,080,000 540,000 540,000 - Tax (50%) 540,000 270,000 270,000 - Dividends 300,000 Retained Earnings 240,000
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BILL FRENCH WHAT IF Assumptions Scenario #1 Scenario #2 Scenario #3 Change product mix x x x Reduce "A" by 200,000 Increase "C" by 450,000
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Unformatted text preview: Double SP of "C" x x x Increase fixed cost x x x Increase variable cost by 10% x x Regular dividends * x Earnings retention * x * Before taxes BILL FRENCH SCENARIO # Aggregate "A" "B" "C" Full capacity Volume sold Unit price Total sales Unit VC Total VC Unit CM Total CM CM Ratio Fixed costs BEP Units BEP $ Total income Tax (50%) Dividends Retained Earnings BILL FRENCH OPTIONS Fixed Costs Unit CM BE Units UCM/SP BE $ Scenario #1 Scenario #2 Scenario #3 Pay extra div; No union inc; Inc. F/C; retain 150T With union inc; no extra div; Inc. F/C; retain 150T Pay extra div; With union inc; Inc. F/C; retain 150T...
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Bill French - Double SP of "C" x...

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