Cost Accounting

royal.xls

Sheet1

Royal Financial Services
							Fully Loaded	Incremental
Base Income Statement	Income Statement	Mortgage	Auto	Personal	Total		Home Equity	Home Equity
Annual Volume of Loans	Annual Volume of Loans
Origination Fee/Unit	Origination Fee/Unit
Total Revenues	Total Revenues
Operating Expense	Operating Expense
Profit	Profit
Profit % Revenue	Profit % Revenue
Activities	Activity Driver	Mortgage	Auto	Personal	Total Cost	Cost Driver Rate
Accept applications	# pages per application
Obtain credit referrals	# credit sources/appl.
Do loan analysis	# hours analysis/appl.
Close loan	# hours to close loan
% of loan applications that get closed
Revised ABC Income Statement		Mortgage	Auto	Personal
Total Revenues
Operating Expense	Accept applications
	Obtain credit referrals
	Do loan analysis
	Close loan
	Total Oper Exp
Profit
Profit % Revenue
		Mortgage	Auto	Personal
Default rate experienced by loan processor		2%	1%	6%
Industry average		2%	3%	4%
Per Unit		Mortgage	Auto	Personal
Total Revenues
Operating Expense	Accept applications
	Obtain credit referrals
	Do loan analysis
	Close loan
	Total Oper Exp
	Profit

&L&D &T&CPage &P&R&F