Exhibit 1:
Flash memory (Samsung) $27.00
Application processor (Samsung) 10.75
Chip for phone calls (Infinion) 14.05
Gryoscope (STMicroelectronics) 2.6
8 other purchased chips 70.95
$125.35
Variable supplies and tools 62.54
187.89
Labor:
Assembly and packaging (per unit) 13.11
Shipping (per unit) 1.06
Unit Variable 202.06
Exhibit 2:
Factory rent $400,000
Machine depreciation 150,000
Utility fee and local taxes 52,000
Supervision 127,000
Monthly fixed costs $729,000
Chart Title
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800
Units Revenue Expenses
Chart Title
180000
160000
140000
120000
100000
80000
60000
40000
20000
0
0 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800
Revenue Expenses
Break even chart for Handsets
60000
50000
Revenue / Expenses
40000
36265
30000
20000
10000
0
0 50 100 150 200 250
Handset Units
175.875
Revenue Expenses
Production units (Planned) 200,000
Production units (Actual) 180,000
Revenue 41,240,000
Fixed cost 729,000
Variable cost 40,411,000
Unit Revenue (Total Revenue/Production Units) 206.200
Unit Variable Cost (Total Variable Cost/ Production Units) 202.055
Contribution Margin (Unit Revenue- Unit Variable Cost) 4.145
Breakeven units 175,875
Total Cost (Planned) $41,140,000
Expected Cost Per Unit $205.70
Total Cost (Actual) $38,148,000
Actual Cost Per Unit $211.93
Variance Per Unit (6)
Units Dollars Revenue Expenses
0 500 0 729
50 500 10310 10831.75
100 500 20620 20934.5
150 500 30930 31037.25
200 500 41240 41140
250 500 51550 51242.75
300 500 61860 61345.5
350 500 72170 71448.25
400 500 82480 81551
450 500 92790 91653.75
500 500 103100 101756.5
550 500 113410 111859.25
600 500 123720 121962
650 500 134030 132064.75
700 500 144340 142167.5
750 500 154650 152270.25
800 500 164960 162373
Flexible Budget (August) Flexible Monthly Budget ('000s)
Units 18000
Revenue (Transfer from Shenzen) 37116
Variable Costs:
Materials
Flash Memory 4860
Application Process 1935
Chips (Phone) 2529
Gyroscope 468
8-other chips 12771
Variable Supplies and tools 11257.2
Subtotal 33820.2
Direct Labour:
Assembly and Packaging 2359.8
Shipping 190.8
Total Variable Costs 36370.8
Fixed Costs:
Factory Rent 400
Machine Depriciation 150
Utility fees and taxes 52
Supervision 127
Total Fixed Cost 729
Total Costs 37099.8
Net Income 16.1999999999971
Bill of materials (per unit) Purchased chips:
Flash memory (Samsung) 27
Application processor (Samsung) 10.75
Chip for phone calls (Infinion) 14.05
Gryoscope (STMicroelectronics) 2.6
8 other purchased chips 70.95
Total
Variable supplies and tools
Labor:
Assembly and packaging (per unit)
Shipping (per unit)
Production Units ('000) 180
Factory rent $400,000
Machine depreciation 150000
Utility fee and local taxes 52000
Supervision 127000
Monthly fixed costs 729,000
Fixed cost per unit 4.05
Actual ('000s) Variance ('000s)
18000
37476 360
5249 389
1935 -
2529 -
468 -
12643 -128
11305 47.7999999999993
34129 308.800000000003
3092 732.2
191 0.199999999999989
37412 1041.2
400 -
150 -
52 -
134 7
736 7
38148 1048.2
-672
125.35
62.54
187.89
13.11
1.06
202.06 206.11
but according to the given given monthly budget of 200,000 units,
> we can calculate the revenue using this but then the net income would be 0
nthly budget of 200,000 units, the unit price is 206.2 then the revenue will be 37116 to dekhle kya lena h
For Flash Memories:
a) Material Price Variance Actual Quantity x (Actual Price - Standard Price)
360000
b) Material Usage Variance Standard Price x (Actual Quantity - Standard Quantity)
27000
For August:
c) Labor Rate Efficiency Actual Production x (Actual Rate - Standard Rate)
732200
d) Labor Usage Efficiency Standard Rate x (Actual Production - Standard Production)
(262,200)
e) Overhead Spending Variance Actual Fixed Overhead Costs - Standard Fixed Overhead Costs
(7,000)
Actual Production 180000
Standard Production 200000
ndard Price)
Standard Quantity)
tandard Rate) Actual Labor Rate 17.18
Standard Rate 13.11
- Standard Production)
dard Fixed Overhead Costs Total Monthly Fixed Overhead 729000
August Fixed Overhead 736000
