ACTG 2300 Lecture 7: Day 7 Notes
7 Feb 2017
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They buy a finished shoe, so tvc is high due to costs! They produce their own shoes, so tfc is high due to manufacturing. Ex: paying programmers that only worked on 1 game. Indirect cost cant directly trace the cost to which game. Ex: rent for buildings that had space to work on both games. Return on sales (ros) = tr / oi = 100,000 / 6,000. Often done through revenues: ex: our revenues are 100,000. Break down the total into segments by tracing the cost directly to the various segments: cm ratio = tcm / tr = ucm / p = (tcm/v) / p = (p-uvc) / p. 30% of revenues goes towards covering the tfc: bep in $ = tfc / cm ratio. Bep in $ = 24,000 / 0. 3 = ,000. Must sell ,000 before you make a profit. Break down total bep into separate products. % sales on segment a / tr.
