Scribd Logo
Upload

Welcome to Scribd!

  • 34 views

    Kelompok 1 - CVP Analysis - Akmen (A4)

    Uploaded by

    Yuliana Riska
    This document discusses cost-volume-profit (CVP) analysis, which expresses the relationship between units sold, revenue, variable costs, fixed costs, and profit. It defines key CVP terms like break-even point, contribution margin, variable cost ratio, and uses examples to demonstrate how to calculate break-even point in units and dollars. The document also explains how to use CVP analysis to determine the sales volume needed to achieve a targeted profit level before or after taxes. Graphs are presented to visualize the relationships between sales, costs, and profits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Kelompok 1 - CVP Analysis - Akmen (A4)

    Uploaded by

    Yuliana Riska
    34 views20 pages
    This document discusses cost-volume-profit (CVP) analysis, which expresses the relationship between units sold, revenue, variable costs, fixed costs, and profit. It defines key CVP terms like break-even point, contribution margin, variable cost ratio, and uses examples to demonstrate how to calculate break-even point in units and dollars. The document also explains how to use CVP analysis to determine the sales volume needed to achieve a targeted profit level before or after taxes. Graphs are presented to visualize the relationships between sales, costs, and profits.

    Original Title

    KELOMPOK 1_ CVP ANALYSIS_AKMEN (A4)

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses cost-volume-profit (CVP) analysis, which expresses the relationship between units sold, revenue, variable costs, fixed costs, and profit. It defines key CVP terms like break-even point, contribution margin, variable cost ratio, and uses examples to demonstrate how to calculate break-even point in units and dollars. The document also explains how to use CVP analysis to determine the sales volume needed to achieve a targeted profit level before or after taxes. Graphs are presented to visualize the relationships between sales, costs, and profits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    34 views20 pages

    Kelompok 1 - CVP Analysis - Akmen (A4)

    Uploaded by

    Yuliana Riska
    This document discusses cost-volume-profit (CVP) analysis, which expresses the relationship between units sold, revenue, variable costs, fixed costs, and profit. It defines key CVP terms like break-even point, contribution margin, variable cost ratio, and uses examples to demonstrate how to calculate break-even point in units and dollars. The document also explains how to use CVP analysis to determine the sales volume needed to achieve a targeted profit level before or after taxes. Graphs are presented to visualize the relationships between sales, costs, and profits.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 20

    KELOMPOK 1

    YULIANA RISKA
    (171000531010)

    AIRIN RIZA
    (1910531022)

    ANGELA VERONIKA
    (1910532025)

    http://www.free-powerpoint-templates-design.com
    COST-VOLUME-
    PROFIT (CVP)
    ANALYSIS
    Managerial uses of CVP analysis

    To determine the BEP (break even point)


    To achieve the targeted profit before tax
    and after tax
    Engineering the CVP variables
    COST-VOLUME-PROFIT (CVP)

    CVP expresses:
    units that must be sold to break even
    Impact of a given reduction in fixed costs on
    break-even point
    Impact of an increase in price on profit
    Sensitivity analysis of impact of various
    price or cost levels on profit
    5 VARIABLES IN CVP

    Volume or units sold

    Variable Cost

    Profit

    Fixed cost

    Price
    BREAK-EVEN POINT

    DEFINITION OPERATING INCOME


    BEP is a condition in which the Operating income includes revenues & expenses from
    company is not getting a profit or the firm’s normal operations (before tax).
    a loss.

    It happens where total revenue


    equals total cost; the point of
    zero profit. Operating Income=
    Sales revenue – Variable expenses – Fixed expenses
    BEP

    NET INCOME

    Is operating income minus income taxes.


    Illustration Income Statement

    Break-even is 0 profit. √Check-up on break-even


    VC/unit $ 325 1) Break-even (using equation Sales(600 units @ $ 240,000
    Price/unit $ 400 method): $400)
    Fixed cost for year $ 45.000 0 = Sales revenue – Variable expenses Less: Variable expenses 195,000
    (600 x 325)
    Determine BEP in unit or $ – Fixed expenses
    Contribution margin $ 45,000
    0 = (units sold x price) – (units sold x
    (600 units x $ 75)
    vc/unit) – Fixed expenses
    Less: Fixed expenses 45,000
    0 = (400 x Q) – (325 x Q) - $45,000
    Q=units sold Operating income $ 0

    75 Q = $45,000
    Q = 600 or in total $ 240,000 => 600
    units x $ 400

    EXAMPLE
    CM per unit method (to determine BEP in
    unit):
    # Units = Fixed cost / Unit contribution
    margin
    # units = FC / (Price per unit – VC per unit)
    # Units = $45,000 / ($400 - $325)
    = 600 or $ 240.000 (600 units x $
    400)

    CONTRIBUTION
    Is sales revenue minus variable
    MARGIN costs.
    Target Profit % Sales
    profit that is desired for period. Targeted profit can
    Be calculated as % of sales (profit margin) or % of asset (ROA)

    Target profit can be calculated as % of revenue.

    Proof:
    Sales: 3.000 x 400 1.200.00
    VC: 3.000 x 325 975.000
    CM: 3.000 x 75 225.000
    FC 45.000
    Target profit as 15% of sales: Operating income 180.000
    0.15 ($400Q) = Targeted proft:
    180.000/1.200.000 x 100% =
    ($400 x Q) – ($325 x Q) - $45,000 15% of sales
    60Q = 400Q – 325Q - $45,000
    15Q = 45.000
    Q= 3,000
     Target profit is calculated as % of asset
     Total asset $ 1.000.000
     ROA = 20%
     Target profit: 20% x 1.000.000 = $ 200.000
     Sales (in unit) = FC + target profit before tax
    or in $ ----------------------------------
    CM per unit or CM ratio
    Sales (in units) = 45.000 + 200.000 / (400 – 325)
    = 245.000 / 75
    = 3.267 units
    VARIABLE CONTRIBUTION
    COST RATIO MARGIN RATIO

    VCR CMR

    Is the proportion of each sales


    Is the proportion of each sales
    dollar available to cover fixed
    dollar used to cover variable costs
    costs & provide profit
    CMR for mulching lawn mower.
    Sales (1,000 units @ $400) $ 400,000 100.00%
    Less: Variable expenses 325,000 81.25%
    Contribution margin $ 75,000 18.75%
    Less: Fixed expenses 45,000
    Operating income $ 30,000

    CM Ratio Method
    Contribution margin ratio (CMR) is used to find BEP in Dollar

    Break-even Sales = Fixed cost / CMR


    = FC / (1 – (VC per unit / Price per unit))

    BEP (in $) = $45,000 / (1 – (325 / 400))


    = $ 45.000 / 0.1875
    = $ 240.000 or 600 units (240.000 / 400)
    CM PER UNIT
    CM per unit = marginal
    income (income
    coeficient)  additional
    income for each units
    sold
     Based on previous illustration, what is the profit or loss if sales are:
     600 units => BEP
     601 units => profit $ 75
     599 units => loss $ 75
     No unit sold => loss $ 45.000 (as much as FC)
     700 units => profit: (700 – 600) 75 = $ 7.500
     1 units => loss: 45.000 – 75 =
    Formula: Profit (loss) = 75 x – 45.000
    TARGET PROFIT AFTER TAX
    Sales (in units or $) =
    FC + (Target profit after tax / (1 – tax rate))
    ---------------------------------------------------
    CM per unit or CM ratio
    NIAT = NIBT – Tax
    NIAT = NIBT – (NIBT x Tax rate)
    NIAT = NIBT (1 – Tax rate)
    NIBT (1 – tax rate) = NIAT
    NIBT = NIAT / 1 – tax rate
    If NI after tax desired $ 200.000, how many units should be sold? Tax rate 20%
    Sales in Units =
    (45.000 + (200.000 / 1 – 0.20)) / (400 – 325)
    (45.000 + 250.000) / 75 = 3.933 units
    3 kinds of CVP Graph
    TR line
    Sales / cost Total cost line
    Profit

    BEP
    $ 25 M
    Total Cost
    VC
    $ 10 M FC line
    Loss
    FC

    Q sold
    5.000

    17
    CVP Graph with CM Area
    TR line
    Sales / cost
    Profit Total cost line

    BEP VC line
    CM Area
    $ 25 M
    FC
    $ 10 M
    Loss Total Cost

    VC
    Q sold
    5.000

    18
    Profit and loss graph
    Profit
    Profit/loss = 2000X – 10.000.000

    2M
    BEP Profit
    5.000 6.000
    Q Sold
    Loss

    10 M
    Loss
    19
    THANK YOU

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy