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Unformatted text preview: Contribution Margin per Product Line / Total NOI Example Data Segment Contribution Margin Income Statement Given Values Product A Product B Product A Product B Total Seling price per product $10.0 $20.0 Sales $350,0 0.0 $40 ,0 0.0 $750,0 0.0 Variable expenses per product $4.0 $15.0 Variable Expenses $140,0 0.0 $30 ,0 0.0 $4 0,0 0.0 $1 0,0 0.0 $35,0 0.0 Contribution Margin eq $210,0 0.0 $10 ,0 0.0 $310,0 0.0 Sales Volume in units 35,0 0 20,0 0 Traceable Fixed Expenses $1 0,0 0.0 $35,0 0.0 $145,0 0.0 Segment Contribution Margin eq $10 ,0 0.0 $65,0 0.0 $165,0 0.0 $10 ,0 0.0 (Used in Total) Common Fixed Expenses $10 ,0 0.0 Total Net Operating Income eq $65,0 0.0 Calculated values Total Seling price per product $350,0 0.0 $40 ,0 0.0 Total Variable expenses per product $140,0 0.0 $30 ,0 0.0 $3.14 $1.75 Contribution Margin per Product Line / Total NOI Example Data Segment Contribution Margin Income Statement Given Values Product A Product B Product A Product B Total Seling price per product $12.0 $18.0 Sales $360,0 0.0 $450,0 0.0 $810,0 0.0 Variable expenses per product $8.0 $12.0 Variable Expenses $240,0 0.0 $30 ,0 0.0 $540,0 0.0 $80,0 0.0 $50,0 0.0 Contribution Margin eq $120,0 0.0 $150,0 0.0 $270,0 0.0 Sales Volume in units 30,0 0 25,0 0 Traceable Fixed Expenses $80,0 0.0 $50,0 0.0 $130,0 0.0 Product Line Contribution Margin eq $40,0 0.0 $10 ,0 0.0 $140,0 0.0 $10 ,0 0.0 (Used in Total) Common Fixed Expenses $10 ,0 0.0 Total Net Operating Income eq $40,0 0.0 Calculated values Total Seling price per product $360,0 0.0 $450,0 0.0 Total Variable expenses per product $240,0 0.0 $30 ,0 0.0 $2.67 $2.0 ROI ROI = margin * turnover Margin = NOI/sales Turnover = Sales/average operating as ets Example Data Segment Contribution Margin Income Statement Given Values Product A Margin Seling price per product NOI $3,0 0,0 0.0 Variable expenses per product Sales div $15,0 0,0 0.0 Margin eq 0.20 0 Sales Volume in units 30,0 0 Turnover Sales $15,0 0,0 0.0 Average Operating As ets $30,0 0,0 0.0 (Given) Average Operating As ets div $30,0 0,0 0.0 NOI $3,0 0,0 0.0 (Given) Turnover eq 0.50 0 Calculated values Return on Investment (ROI) Total Seling price per product (Total Sales) $15,0 0,0 0.0 (Given) Margin 0.20 0 Total Variable expenses per product $0.0 Turnover * 0.50 0 $0.0 ROI eq 0.10 0 ROI ROI = margin * turnover Margin = NOI/sales Turnover = Sales/average operating as ets Example Data Segment Contribution Margin Income Statement Given Values Product A Margin Seling price per product NOI $3,0 0,0 0.0 Variable expenses per product Sales div $10,0 0,0 0.0 Margin eq 0.30 0 Sales Volume in units 30,0 0 Turnover Sales $10,0 0,0 0.0 Average Operating As ets $20,0 0,0 0.0 (Given) Average Operating As ets div $20,0 0,0 0.0 NOI $3,0 0,0 0.0 (Given) Turnover eq 0.50 0 Calculated values Return on Investment (ROI) Total Seling price per product (Total Sales) $10,0 0,0 0.0 (Given) Margin 0.30 0 Total Variable expenses per product $0.0 Turnover * 0.50 0 $0.0 ROI eq 0.150 Residual Income...
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This note was uploaded on 03/26/2012 for the course AC505 AC505 taught by Professor Dillan during the Spring '10 term at Keller Graduate School of Management.
 Spring '10
 DILLAN

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