Assignment 2: Analyzing Profitability and Other Variables
eboloweldin
auo_ms6010_compnet_budget_template_1.xlsBudget
| Budgeted Amounts | |
| Sales | |
| Sales price per unit | $35.00 |
| Project Sales Volume (in units) | 1,500,000 |
| Variable Cost per unit | |
| direct Labor | $2.50 |
| Direct Materials | $6.00 |
| Direct sales expense | $0.50 |
| Fixed Cost | |
| Product management team | $5,000,000.00 |
| Amortization of sales price | $20,000,000.00 |
| Interest expense | $3,000,000.00 |
Actual Results
| Actual Sales | |
| Sales | |
| Actual average Sales Price | $35.50 |
| Actual Sales (in units) | 1,350,000 |
| Variable Cost per unit | |
| Actual direct labor | $2.75 |
| Actual direct materials | $5.25 |
| Actual sales expense | $0.65 |
| Fixed Cost | |
| Product management team | $5,000,000.00 |
| Amortization of sales price | $20,000,000.00 |
| Interest expense | $3,000,000.00 |
The product line was purchased and you are assigned P&L responsibility for the Prime
Component Product Line.
The first year’s budget is based upon t he variables outlined in M4: Assignment 2.
Part 1 assignment:
Based upon this budget, project sales and profit for the product line.
At year end the company reviewed its results and determined the following results:
Your assignment:
1. Prepare a sales budget variance report
2. Prepare a manufacturing budget report
At year end the company reviewed its results and determined the following results:
Your assignment:
1. Prepare a sales budget variance report
2. Prepare a manufacturing budget report
Part 1 assignment:
Based upon this budget, project sales and profit for the product line.
The product line was purchased and you are assigned P&L responsibility for the Prime Component Product Line.
The first year’s budget is based upon the variables outlined in M4: Assignment 2.
