Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



Download 1.72 Mb.
View original pdf
Page178/469
Date01.12.2021
Size1.72 Mb.
#57828
1   ...   174   175   176   177   178   179   180   181   ...   469
solutions-manual-to-bhimani-et-al-management-and-cost-accounting-pearson-2012-1
8.17
CVP, income taxes.
(10–15 min)
1
Operating profit
= Net profit ÷ (1 − tax rate)
= €84,000 ÷ (1 − 0.40)
=
€140,000
2
Contribution margin
= Fixed costs + Operating profit Contribution margin
=
€300,000 + €140,000
Contribution margin
= €440,000
3
Revenues 0.80 Revenues = Contribution margin
0.20 Revenues
= €440,000
Revenues
= €2,200,000
4
Breakeven point
= Fixed costs ÷ Contribution margin percentage
Breakeven point
= €300,000 ÷ 0.20
= €1,500,000


Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5
th
Edition, Instructor’s Manual
© Pearson Education Limited 2012
8.18
CVP, movie production.
(10 min)
1
Fixed costs = €5,000,000 (production cost) Unit variable cost = €0.20 per €1 revenue (marketing fee) Unit contribution margin = €0.80 per €1 revenue
a
Fixed costs
Break even point in revenues = Unit contribution margin per € 1 revenue
=
€5,000,000
€0.80

=
€6,250,000
b
Espasso receives 62.5% of box-office receipts. Box-office receipts of
€10,000,000 translate to €6,250,000 in revenues to Espasso.
2
Revenues,
0.625
× €300,000,000
€187,500,000 Variable costs, 0.20
× €187,500,000 37,500,000 Contribution margin
150,000,000 Fixed costs
5,000,000 Operating income
€145,000,000

Download 1.72 Mb.

Share with your friends:
1   ...   174   175   176   177   178   179   180   181   ...   469




The database is protected by copyright ©ininet.org 2024
send message

    Main page