cost practicum 4

8/10/2019 Cost Practicum 4

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COST ACCOUNTING PRACTICUM

BY: FitriaMandaraira 11 11 3 4 1 GeubrinaRiaAndarint 11 11 3 4 11 SukhrobiRustamzoda 11 11 3 4 15


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Contribution Income Statement (PC1)

GnF Beauty cooperation specializes in make up production, focus on compact powder. It salesRp30,000 per unit of compact powder. GnFs fixed costs are Rp160,000 per month (foradministration, salaries, rent, and so on), and its variable costs are Rp22,000 per unit.

Contribution Income Statement

GnF Beauty

Number of Units Sold

0 10 20 30 40

Revenues Rp30,000 per unit Rp0 Rp300,000 Rp600,000 Rp900,000 Rp1,200,000

Variable Cost Rp22,000 per unit Rp0 Rp220,000 Rp440,000 Rp660,000 Rp880,000

Contribution Margin Rp8,000 per unit Rp0 Rp80,000 Rp160,000 Rp240,000 Rp320,000Fixed Costs Rp160,000 Rp160,000 Rp160,000 Rp160,000 Rp160,000 Rp160,000

Operating Income -Rp160,000 -Rp80,000 Rp0 Rp80,000 Rp160,000

The contribution income statement above, from left to right we can see that the increase incontribution margin exactly equals the increase in operating income (the decrease in operating loss).

Contribution Margin (PC2)

The GnFs fixed costs Rp160,000 will not change no matter how many units GnF sells. In otherside, GnF will incurred variable cost Rp22,000 for each unit that they sell. To get an idea of howoperating income will change as a result of selling quantities of packages, GnF calculates operatingincome if sales are 10 units and if sales are 40 units.

Contribution margin percentage

= 26.67%Contribution margin percentage is the contribution margin per rupiah of revenue. GnF earns26.67% of each rupiah of revenue.


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10 units sold 40 units sold

Revenues Rp300,000 (Rp30,000 per unit x 10 units) Rp1,200,000 (Rp30,000 per unit x 40 units)Variable

Purchase Costs Rp220,000 (Rp22,000 per unit x 10 units) Rp880,000 (Rp22,000 per unit x 40 units)Fixed Costs Rp160,000 Rp160,000

Operating Income -Rp80,000 Rp160,000

Contribution margin = Total revenues Total variable costsThe contribution margin when GnF sales 10 units is Rp80,000 (Rp300,000 in total revenues minusRp220,000 in total variable costs).The contribution margin when GnF sale 40 units is Rp320,000 (Rp1,200,000 in total revenuesminus Rp880,000 in total variable costs).

Contribution Margin Concept (PC3)

Assumption 1Changes in fixed costs and sales volumeIn the following table GnF cooperation wants to see what happened on the contribution margin ifthey change the fixed costs and sales volume. GnF changes the unit sold become 50 units and fixedcost from Rp160,000 become Rp180,000.


= 26.67%

50 units sold

Revenues Rp30,000 per unit Rp1,500,000

Variable Cost Rp22,000 per unit Rp1,100,000

Contribution Margin Rp8,000 per unit Rp400,000

Fixed Costs Rp180,000 Rp180,000

Operating Income Rp220,000


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Assumption 2Changes in variable costs and sales volumeIn the following table GnF cooperation wants to see what happened on the contribution margin ifthey change the variable costs and sales volume. GnF changes the unit sold become 50 units andvariable cost from Rp22,000 become Rp25,000.


= 16.67%

Assumption 3Changes in fixed costs, sales price and sales volume

In the following table GnF cooperation wants to see what happened on the contribution margin ifthey change the fixed costs, sales price and sales volume. GnF changes the unit sold become 50units, sales price form Rp30.000 become Rp35.000 and fixed cost from Rp160,000 becomeRp180,000.


= 37.14%

50 units sold






50 units sold







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Assumption 4Changes in variable costs, Fixed costs and sales volumeIn the following table GnF cooperation wants to see what happened on the contribution margin ifthey change the variable cost, fixed costs and sales volume. GnF changes the unit sold become 50units, fixed cost from Rp160,000 become Rp180,000 and variable cost from Rp22.000 becomeRp25.000


= 16.67%

Assumption 5Changes in regular sales priceIn the following table GnF cooperation wants to see what happened on the contribution margin ifthey change the fixed costs and sales volume. GnF changes the unit sold become 50 units and fixedcost from Rp160,000 become Rp180,000.


= 45%

50 units sold






40 units sold


Variable Cost Rp22,000 per unit Rp880,000





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Break Even Point (PC4)

Break Even Point Quantity = = = = 50 units

Sensitivity Analysis

a. How will profit change if the selling price increase to Rp38,000 and Rp42,000? b. How will profit change if the sales volume changes?

c. How will profit change if fixed costs increase to Rp180,000 and Rp200,000, and variable costincreases to Rp25,000and Rp28,000

d. How will profit change if fixed costs increase to Rp180,000 and Rp200,000

e. How will profit change if variable cost increases to Rp25,000 and Rp28,000?

Rp30,000

Rp0Break even point

Rp160,000 Rp22,000 20 40 51 60Rp160,000 Rp25,000 32 64 82 96Rp160,000 Rp28,000 80 160 205 240Rp180,000 Rp22,000 23 43 54 63

Rp180,000 Rp24,000 30 57 72 83Rp180,000 Rp28,000 90 170 215 250Rp200,000 Rp22,000 25 45 56 65Rp200,000 Rp25,000 40 72 90 104Rp200,000 Rp28,000 100 180 225 260

Rp320,000.00Variable cost

per unitFixed costs

Number of unit required to be sold at sell ingprice to earn target operating income of

Rp160,000.00 Rp250,000.00

Selling price per unit

Per unit TotalRevenues Rp30,000 Rp600,000Variable Costs Rp22,000 Rp440,000Contribution Margin Rp8,000 Rp160,000Fixed Costs Rp160,000Operating Income Rp0

Contribution Income StatementGnF Beauty Cooperation

For the month of October (20XX)


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Rp38,000

Rp0Break even point

Rp160,000 Rp22,000 10 20 26 30Rp160,000 Rp25,000 12 25 32 37Rp160,000 Rp28,000 16 32 41 48Rp180,000 Rp22,000 11 21 27 31Rp180,000 Rp24,000 13 24 31 36Rp180,000 Rp28,000 18 34 43 50Rp200,000 Rp22,000 13 23 28 33Rp200,000 Rp25,000 15 28 35 40Rp200,000 Rp28,000 20 36 45 52

Number of unit required to be sold at sell ingprice to earn target operating income of

Fixed costsVariable cost

per unitRp160,000.00 Rp250,000.00 Rp320,000.00

Rp42.000

Rp0Break even point

Rp160.000 Rp22.000 8 16 21 24Rp160.000 Rp25.000 9 19 24 28Rp160.000 Rp28.000 11 23 29 34Rp180.000 Rp22.000 9 17 22 25Rp180.000 Rp24.000 10 19 24 28

Rp180.000 Rp28.000 13 24 31 36Rp200.000 Rp22.000 10 18 23 26Rp200.000 Rp25.000 12 21 26 31Rp200.000 Rp28.000 14 26 32 37

Rp320.000,00

Number of unit required to be sold at sellingprice to earn target operating income of

Fixed costsVariable cost

per unitRp160.000,00 Rp250.000,00


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Sales mix (PC5)suppose GnF now budgeting for lipstick product,they plan to sell two different product compact

powder and lipstick and the bugdet in following table :

Compact

powder

Lipstick Total

Expected sales 40 60 100

Revenues, RP30.000 and Rp15.000 per unit Rp1.200.000 Rp900.000 Rp2.100.000

Variable cost, Rp22.000 and Rp8.000 per unit Rp880.000 Rp480.000 Rp1.360.000

Contribution margin, Rp8.000 and Rp7.000 perunit

Rp330.000 Rp420.000 Rp740.000

Fixed costs Rp200.000

Operating income Rp540.000

we assume that the budgeted sales mix (40 units of compact powder success sold for every 60units of lipsticks sold,that is the ratio 2:3) will not chage at different leves of total unit sales.

*we think of GnF selling a bundle of 2 units compact powder and 3 units of lipstick. (does notmean physically only assumption)

Number of unitof compactpowder andlipstick each

bundle

Contributionmargin per unit

for compactpowder and

lipstick Total

compactpowder

2 Rp8.000 Rp16.000

lipstick 3 Rp7.000 Rp21.000total Rp37.000

To compute the breakeven point we calculate the number of bunddles GnF need to sell

Breakevenpoint inbundles

fixed cost Rp200.0005,5

bundleor about6 bundlecontribution margin per bundle Rp37.000


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Breakeven point in units of compact powder and lipstick is as follows:

compact powder : 6 bundles X 2 units of compact powder 12 units

lipstick : 6 bundles X 3 units of lipstick 18 unitstotal number of units to breakeven 30 units

Breakeven point in Rupiah for compact powder and lipstick is as follows:

compact powder : 12 units X Rp30.000 of compact powder Rp360.000

lipstick : 18 units X Rp15.000units of lipstick Rp270.000

total number of units to breakeven Rp630.000

GnF calculates the revenue from selling a bundle of 2 units compact powder and 3 uits of lipstickto get the contribution margin percentage for the bundle

Number of unitof compactpowder andlipstick each

bundle

selling price forcompact

powder andlipstick

Revenue of the bundle

compactpowder

2 Rp30.000 Rp60.000

lipstick 3 Rp15.000 Rp45.000total Rp105.000

Contribution margin percentage for the bundle =

= = 0,3524 or 35,24%

The breakeven point in units and Rupiah for compact powder and lipstick are as follows:

Compact powder : 6 bundles x 2 units of compact powder = 12 units x Rp30.000 = Rp360.000

Lipstick : 6 bundles x 3 units of lipstick = 18 units x Rp15.000 = Rp270.000

cost practicum 4

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