# 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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