Management Accounting: Golden Bakeries LTD - CVP Analysis.

I. Executive Summary Golden Bakeries ltd. has three major ingathering lines: simoleons rolls, donuts and pull wires cakes. Survey from the statement of financial executing as of June end 2004, sensible and finished goods are well-nigh same for three kinds of products. It nitty-gritty the production and gross sales mention 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 social club C-V-P Analysis. A method for understanding the alliance between revenue, be and sales volume is cost-volume-profit analysis, or CVP. CVP is implicated with understanding the birth between changes in activity (the go of units sold) and changes in sell prices and costs (both fixed and varilable). A. Bread rolls Bread rolls sum 67% percentage in overall sales, product function delimitation is 50. 3%. Contribution of the fixed cost is $1,006K, it means max.fixed cost of amortization is $1,006K. The break-even hitch in sales units is 2,160K Kg, The arrive of money unpatterned 2,160K Kg is the bank of safety. Unit profit proportionality reached 23.2%, is the proudest proportionality 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-Bread rolls of 13% more or less. Knowing that contribution of the fixed cost is $296K. The break-even point i! n 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 pelf 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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