ACC2113 05 S2 02wshopSol.doc

文档介绍：(S2/2005)
Module 2: Cost Behaviour & Estimation & CVP Analysis
SOLUTIONS
QUESTION 1 (Kym’s Coffee Shop)
(note: leave out any data outside the relevant range, if such range is indicated)
Now, using the strictly highest and lowest activity (customer) points:
1.
b = $3400 - $1100 = $
825 – 210
now, use substitution to determine the fixed cost element “a”, in the y = a + bx relationship
$3400 = a + $ x 825
\ a = $315
therefore, the cost equation is:
y = $315 + $
2.
Now, using the above equation to estimate the costs for 550 customers:
y = $315 + $ x 550
\ y = $2372
Note:
If you plot the data on a graph, you might choose 779 and 291 as more “representative” high and low points. You could then use them to find “better” values of “b” and “a”, and consequently a more reliable cost equation.
For example:
b = $3450 - $1550 = $
779 - 291
and, then “a” by substitution:
$3450 = a + 779 x $
\ a = $417
therefore, the cost equation would be:
y = $417 + $
and, for 550 customers, the predicted costs using this equation would be:
y = $417 + $ x 550 = $2558
QUESTION 2 (Ben Martin’s Soft Drinks)
Firstly, analyse the data, as follows: per can % of revenue
Selling price $ %
- Variable Costs (30 cents + 5 cents) $ %
\ Contribution Margin = $ %
1. break-even p