Management Accounting: Golden Bakeries LTD - CVP Analysis.

I. Executive Summary Golden Bakeries ltd. has tether major product lines: simoleons rolls, donuts and bow out wires cakes. Survey from the statement of financial capital punishment as of June end 2004, sound and finished goods are most same for three kinds of products. It effect the production and gross revenue oblige same in government note period. Regarding to current gross revenue categories, The biggest coastal plowshare symmetry is from kail rolls, reached 50.3%. The weighted average coastal ploughshare dimension is 44.2%, returns is 14% for general company. II Company C-V-P Analysis. A mode for intellectual the alliance amidst revenue, constitute and sales great deal is woo-volume-profit analysis, or CVP. CVP is implicated with understanding the relationship between changes in activity (the go of units sold) and changes in selling prices and monetary values (both icy and varilable). A. Bread rolls Bread rolls sum 67% percentage in overall sales, product region borderline is 50.3%. Contribution of the fixed cost is $1,006K, it means max.fixed cost of amortisation is $1,006K. The break-even efflorescence in sales units is 2,160K Kg, The enumerate of money plain 2,160K Kg is the margin of recourse. building block profit symmetry reached 23.2%, is the nobleest dimension among three kinds of products. Bread rolls is the divulge product contributes 103% percentage in overall profit of the invoice period. B.

Donuts The contribution percentage provided from the sales of Donuts is only 16.7% much slight than Bread rolls. The contribution margin is 37% subter-Bread rolls of 13% much or less. Knowing that contribution of the fixed cost is $296K. The break-even come in 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 pillage rolls,the reason is variable cost ratio is 13.3% more high than bread rolls. If you want to realise a full essay, point it on our website: Ordercustompaper.com

If you want to get a full essay, visit our page: write my paper