Analysis of Fixed and Variable Costs

A. Analysis of Fixed and Variable Costs

Sales (units) 57024

Production (units) n 57024

FIXED COSTS/EXPENSES E

Marketing:

Salesmen's salaries 4444000

Salemen's training 299100

Advertising 1070000

Territory sales office rental 45000

Territory offices operating expenses 180000

Credit department 0

Home office 73125

Total - 6111225

General & Administrative:

Executive salaries 480000

Secretarial & clerical 180000

Supplies 15000

Depreciation, building 5000

Depreciation, furniture & fixtures 7500

Total - 687500

Manufacturing:

Fixed direct labor 1110000

Utilities 10500

Production planning & control 120000

Purchasing and receiving costs 447074

Factory insurance 12000

Depreciation, prod. equip. & tools 117500

Depreciation, building 20000

Factory supplies 10000

Factory workers training cost 42500

Total - 1889574

-

Total fixed costs 8688299

=

VARIABLE COST/EXPENSES

Marketing: Amount Rate

Salesmen's commissions 2115207 37.09

Packaging 114048 2.00

Salesmen travel 392895 6.89

Bad debts 0 0.00

Credit department 0 0.00

- -

Total marketing 2622150 45.98 45.98

- -

General & Administrative:

Travel 179789 3.15

Supplies 57024 1.00

- -

Total general & admin. 57024 4.15 4.15

- -

Manufacturing:

Labor:

Cutting department 1393920 24.44

Assembling department 1393920 24.44

- -

Total labor 2787840 48.89

- -

Material:

Material X 2942938 51.61

Material Y 1824768 32.00

- -

Total material 4767706 83.61

- -

Variable overhead:

Utilities 42768 0.75

Repairs & maintenance 114048 2.00

Supplies 42768 0.75

Material spoilage loss 123840 2.17

- -

Total variable overhead 323424 5.67

- -

Total variable mfg. 7878970 138.17 138.17

-

188.31

Total variable costs/expenses =

Material X Material Y

Beginning inventory 1940160 0

Purchases (net) 2972160 * 1920000

- -

4912320 1920000

Ending inventory 1969882 95232

- -

Materials used 2942438 1824768

= =

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