02 Jul Comparative cost-volume profit analysis
Question Description
OPTION #2: COMPARATIVE COST-VOLUME-PROFIT ANALYSIS CALCULATION
Phil Lesley, Controller, would like to complete a comparative cost-volume-profit analysis for the current year over the prior year for the chewing gum manufacturing plant to determine if the breakeven point was achieved, and how it may have differed between the two years.
Specific costs for production of 400,000 units each year, include the following:
2017 – Current Year
Chewing Gum Manufacturing Division Costs Variable Costs Total Fixed Costs Total
Raw materials $ 250,000
Direct manufacturing labor $ 110,000
Indirect manufacturing labor $ 42,500
Factory Insurance & Utilities $ 35,000
Depreciation — Machinery and factory $ 48,500
Repairs and maintenance —factory $ 8,000
Selling, marketing, and distribution expenses $ 10,000 $ 30,000
General and administrative expenses $ 50,000
2016 – Prior Year
Chewing Gum Manufacturing Division Costs Variable Costs Total Fixed Costs Total
Raw materials $ 245,000
Direct manufacturing labor $ 105,000
Indirect manufacturing labor $ 50,250
Factory Insurance & Utilities $ 33,750
Depreciation — Machinery and factory $ 38,500
Repairs and maintenance —factory $ 14,000
Selling, marketing, and distribution expenses $ 10,000 $ 25,000
General and administrative expenses $ 60,000
There is no beginning or ending inventories. The total sales for 400,000 units produced are $1,050,000 for 2016 and $1,200,000 for 2017.
Using Microsoft Excel, answer the following questions for each year given the fact pattern above, showing all supporting calculations and labelling answers clearly. Please refer to CSU-Global Library (Links to an external site.)
Links to an external site.
for Lynda.com tutorials on using Microsoft Excel or use the Excel Tutorials link found in the classroom if you need assistance.
What is the contribution margin per unit for each multipack of gum produced given the fact pattern above?
What is the breakeven point in units and dollars given the fact pattern above?
What is the division’s margin of safety and degree of operating leverage given the fact pattern above?
Create a very simple Excel table summarizing answers of each computation for each year. *Below the table in Excel, please write at least 3 observations you have regarding the data comparisons/contrasts.
Responses should be in complete sentences utilizing proper grammar. Your paper must be formatted according to CSU-Global Guide to Writing and APA Requirements (Links to an external site.)
Links to an external site.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Wridemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.