Week 6 - Contribution Margin per Product Line / Total NOI...

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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 Sel ing price per product $10.00 $20.00 Sales $350,000.00 $400,000.00 $750,000.00 Variable expenses per product $4.00 $15.00 Variable Expenses- $140,000.00 $300,000.00 $440,000.00 $110,000.00 $35,000.00 Contribution Margin eq $210,000.00 $100,000.00 $310,000.00 Sales Volume in units 35,000 20,000 Traceable Fixed Expenses- $110,000.00 $35,000.00 $145,000.00 Product Line Contribution Margin eq $100,000.00 $65,000.00 $165,000.00 $100,000.00 (Used in Total) Common Fixed Expenses- $100,000.00 Total Net Operating Income eq $65,000.00 Calculated values Total Sel ing price per product $350,000.00 $400,000.00 Total Variable expenses per product $140,000.00 $300,000.00 $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 Sel ing price per product $12.00 $18.00 Sales $360,000.00 $450,000.00 $810,000.00 Variable expenses per product $8.00 $12.00 Variable Expenses- $240,000.00 $300,000.00 $540,000.00 $80,000.00 $50,000.00 Contribution Margin eq $120,000.00 $150,000.00 $270,000.00 Sales Volume in units 30,000 25,000 Traceable Fixed Expenses- $80,000.00 $50,000.00 $130,000.00 Product Line Contribution Margin eq $40,000.00 $100,000.00 $140,000.00 $100,000.00 (Used in Total) Common Fixed Expenses- $100,000.00 Total Net Operating Income eq $40,000.00 Calculated values Total Sel ing price per product $360,000.00 $450,000.00 Total Variable expenses per product $240,000.00 $300,000.00 $2.67 $2.00 ROI ROI = margin * turnover Margin = NOI/sales Turnover = Sales/average operating assets Example Data Segment Contribution Margin Income Statement Given Values Product A Margin Sel ing price per product NOI $3,000,000.00 Variable expenses per product Sales div...
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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.

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Week 6 - Contribution Margin per Product Line / Total NOI...

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