Amelia Andriani – 01616200062

IEMM 13 / MHM 15
Universitas Pelita Harapan

Questions (30%)

1 Production Cost Component:

Direct Labor : Production Wages.
Raw Material : Salt, Cooking Oil, Lime, Yellow Corn, Bags.
Fixed Overhead : Supervisor Salary, Material Handling.
Variable Overhead : Electricity

2
Total-debt-to-total-assets adalah leverage ratio yang menentukan jumlah total hutang relatif terhadap aset yan
Kesimpulannya, Happy Company memiliki performance lebih baik walaupun current ratio nya lebih rendah
ng relatif terhadap aset yang dimiliki oleh suatu perusahaan. Dengan menggunakan metrik ini, analis dapat membandingkan leve
ent ratio nya lebih rendah dibandingkan Smile Company, karena Smile company memiliki debt to assets ratio lebih besar.
 lis dapat membandingkan leverage satu perusahaan dengan perusahaan lain di industri yang sama. Informasi ini dapat mencerm
o assets ratio lebih besar.
a. Informasi ini dapat mencerminkan seberapa stabil perusahaan secara finansial. Semakin tinggi rasionya, semakin tinggi Degre
rasionya, semakin tinggi Degree of Leverage (DoL) mengakibatkan semakin tinggi risiko berinvestasi di perusahaan tersebut. B
stasi di perusahaan tersebut. Berdasarkan data debt to assets ratio, 32% vs 78%, Happy Company adalah pilihan yang jauh lebi
y adalah pilihan yang jauh lebih aman.
Problem 1 (25%)

Hope Outfit
Segmented Income Statement
For the Coming Year
Shoes T-shirts Sport Caps Total
Sales $250,000 $400,000 $350,000 $1,000,000
Less variable expenses:
Variable selling expense (130,000) (120,000) (140,000) (390,000)
Contribution Margin $120,000 $280,000 $210,000 $120,000
Less direct fixed expenses:
Direct fixed overhead (160,000) (200,000) (175,000) (535,000)
Segmented margin $(40,000) $80,000 $35,000 $75,000
Less common fixed expenses:
Common fixed overhead (90,000)
Operating loss $(15,000)

Hope Outfit
Segmented Income Statement
For the Coming Year
Shoes T-shirts Sport Caps Total
Sales $320,000 $350,000 $670,000
Less variable expenses:
Variable selling expense (96,000) (120,000) (216,000)
Contribution Margin $224,000 $230,000 $454,000
Less direct fixed expenses:
Direct fixed overhead (200,000) (175,000) (375,000)
Segmented margin $(24,000) $55,000 $79,000
Less common fixed expenses:
Common fixed overhead (90,000)
Operating loss $(11,000)

Yes, we recommend to eliminating caps line because eliminating the caps will reduce $4,000
the loss
Problem 2

1 a. Variable Cost Ratio

𝑇𝑜𝑡𝑎𝑙 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 240,000
𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡 = = = $𝟐𝟒
𝑈𝑛𝑖𝑡 10,000
𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 24
𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝐶𝑜𝑠𝑡 𝑅𝑎𝑡𝑖𝑜 = = = 𝟎, 𝟔 𝒐𝒓 𝟔𝟎%
𝑃𝑟𝑖𝑐𝑒 40

b. Contribution Margin Ration

𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 160,000
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 𝑅𝑎𝑡𝑖𝑜 = = = 𝟎, 𝟒 𝒐𝒓 𝟒𝟎%
𝑃𝑟𝑖𝑐𝑒 400,000

2 Break-even point in unit

𝑇𝑜𝑡𝑎𝑙 𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡 128,000
𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑝𝑜𝑖𝑛𝑡 𝑖𝑛 𝑈𝑛𝑖𝑡 = = = 𝟖𝟎𝟎𝟎 𝒖𝒏𝒊𝒕
𝑝𝑟𝑖𝑐𝑒 − 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 16

Break-even point in sales

𝑇𝑜𝑡𝑎𝑙 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 128,000

𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑝𝑜𝑖𝑛𝑡 𝑖𝑛 𝑆𝑎𝑙𝑒𝑠 = = = $𝟑𝟐𝟎, 𝟎𝟎𝟎
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 𝑟𝑎𝑡𝑖𝑜𝑛 0,4

4 How many units must be sold to earn profit 60,000

𝑇𝑜𝑡𝑎𝑙 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 + 𝑡𝑎𝑟𝑔𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒

𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠 𝑡𝑜 𝑒𝑎𝑟𝑛 𝑡𝑎𝑟𝑔𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 = =
𝑃𝑟𝑖𝑐𝑒 − 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
128,000 + 60,000
= 𝟏𝟏, 𝟕𝟓𝟎 𝒖𝒏𝒊𝒕
40 − 24

5 Additional Operating Income

Change in profit = 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑚𝑎𝑟𝑔𝑖𝑛 𝑥 𝐶ℎ𝑎𝑛𝑔𝑒 𝑖𝑛 𝑆𝑎𝑙𝑒𝑠 = 50% 𝑥 50,000 = $𝟐𝟓, 𝟎𝟎𝟎

6 Margin of Safety in Unit

Margin of safet in Unit = 𝑆𝑎𝑙𝑒𝑠 𝑢𝑛𝑖𝑡 − 𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑢𝑛𝑖𝑡 = 10,000 − 8,000 = 𝟐, 𝟎𝟎𝟎 𝒖𝒏𝒊𝒕

Margin of Safety in sales

𝑆𝑎𝑙𝑒𝑠 𝑢𝑛𝑖𝑡 − 𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 𝑖𝑛 𝑠𝑎𝑙𝑒𝑠 = 400,000 − 320,000 = $𝟖𝟎, 𝟎𝟎𝟎

7 Degree of operating leverage

𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 160,000

𝐷𝑂𝐿 = = =𝟓
𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒 32,000
𝒖𝒏𝒊𝒕

𝟎𝟎𝟎

𝒖𝒏𝒊𝒕
Problem 3

Alternatives Differential cost to make

Make Buy
Direct materials $18 - $18
Direct labor 8.5 - 8.5
Variable overhead 2.75 - 2.75
Avoidable Fixed overhead 1.35 - 1.35
Purchase cost - $30.5 (30.5)
Total relevant cost $30.6 $30.5 $ 0.1

*Avoidable fixed overhead is the 90% of fixed overhead that would be eliminated if the component
were no longer produced. ($1,5 x 0,9 = $1,35)
Bengawan Manufacturing should purchase the component from Zebra Component Works
it will save $1,500 ($0,1 x 15,000) over making it in-house.
omponent