Year 1 (1) Year 2 (2) Year 3 (3) Life cycle (4) = (1) + (2) + (3) Revenues €42 × 55,000; €37 × 220,000; €32 × 165,000 €2,310,000 €8,140,000 €5,280,000 €15,730,000 RD and design costs 900,000 100,000 0 1,000,000 Manufacturing costs Variable €16 × 55,000; €15 × 220,000; €15 × 165,000 880,000 3,300,000 2,475,000 6,655,000 Batch €700 × ab c 87,500 240,000 180,000 507,500 Fixed 600,000 600,000 600,000 1,800,000 Marketing costs Variable €3.60 × 55,000; €3.20 × 220,000; €2.80 × 165,000 198,000 704,000 462,000 1,364,000 Fixed 400,000 300,000 300,000 1,000,000 Distribution costs Variable €1 × 55,000; €1 × 220,000; €1 × 165,000 55,000 220,000 165,000 440,000 Batch €120 × def Fixed 240,000 240,000 240,000 720,000 Customer service costs Variable €2 × 55,000; €1.50 × 220,000; €1.50 × 165,000 110,000 330,000 247,500 687,500 Total costs 3,500,500 6,184,000 4,794,500 14,479,000 Operating income €(1,190,500) €1,956,000 €485,500 €1,251,000 ab c 165,000 ÷ 550 = 300 def
Bhimani, Horngren, Datar and Rajan, Management and Cost Accounting, 5 th Edition, Instructor’s Manual © Pearson Education Limited 2012 Share with your friends: |