Management Accounting: Golden Bakeries LTD - CVP Analysis.

I. Executive Summary Golden Bakeries ltd. has three major growth lines: simoleons rolls, donuts and pull wires cakes. Survey from the statement of financial surgical ope proportionalityn as of June end 2004, sensible and finished goods are intimately same for three kinds of products. It nitty-gritty the production and gross sales pass on same in account period. Regarding to current sales categories, The biggest coastal plowshare symmetry is from kail rolls, reached 50.3%. The weighted average fringy ploughshare dimension is 44.2%, returns is 14% for overall company. II alliance C-V-P Analysis. A method for understanding the alliance between revenue, imprint and sales volume is cost-volume-profit analysis, or CVP. CVP is implicated with understanding the family relationship between changes in activity (the go of units sold) and changes in merchandising prices and costs (both fixed and varilable). A. Bread rolls Bread rolls sum 67% percentage in overall sale s, product constituent edge is 50.3%. Contribution of the fixed cost is $1,006K, it means max.fixed cost of amortisation is $1,006K. The break-even catch in sales units is 2,160K Kg, The criterion of money bare(a) 2,160K Kg is the allowance account of safety. Unit profit symmetry reached 23.2%, is the high schoolest ratio among three kinds of products. Bread rolls is the key product contributes 103% percentage in overall profit of the accounting period. B.

Donuts The contribution percentage provided from the sales of Donuts is only 16.7% much less than Bread rolls. The contribution margin is 37% subter-Brea d rolls of 13% more or less. Knowing that co! ntribution of the fixed cost is $296K. The break-even point in sales units is 89K Kg, The amount excess 89K Kg is the safety margin. Unit profit ratio reached 4.3%, is the medium ratio among three kinds of products, but less 18.9% than incision rolls,the reason is variable cost ratio is 13.3% more high than bread rolls. If you want to get a full essay, point it on our website: BestEssayCheap.com

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