Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

Cost volume profit analysis - EX3.1

ACCT231 - 15A
by

ohmyits ....

on 31 July 2015

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Cost volume profit analysis - EX3.1

Cost Volume Profit Analysis
Ex: 3.1

The management of a business is concerned about its inability to obtain enough fully trained labour to enable it to meet its present budget projection.
Mix and Match
By: Karen Bendicio
Georgina Garcia
Exercise: 3.1
B) What steps could the business take in an attempt to improve profitability, in terms of labour shortage
- The amount of labour likely to be available amount to $20,000.
- All of the variable labour is paid t the same hourly rate.
- Prepare a statement of plans, ensuring that at least 50 per cent of the budgeted sales revenues are achieved for each service and the balance of labour is used to produce the greatest profit.
Additional Information

A) Prepare the statement showing the greatest profit available from the limited amount of skilled labour available
Calculate Contribution Margin per unit (service)
Formula: Sales Revenue - Variable cost = Contribution Margin
Calculate the Contribution Margin per Limited Factor

A shortage of any factor of production or a scarce resource
Limiting Factor: Amount of skilled labour available.

What is a limited factor?
Formula: Contribution Margin\ Limiting Factor
- Negotiate wages with existing workers
- Increase the price of the service
- Prove training to workers
- Improve efficiency of labour

Rank According to Highest Contribution Margin
Allocate Limiting Factor Based on Priority
Statement of Plan
Introduction
Background
Discussion

Discussion

Discussion
Discussion
Conclusion
Game
By: Karen Bendicio, Georgina Garcia
Full transcript