CLIL-Workshop for Managerial Accounting – CVP-AnalysisHTL Mödling, 2016-02-12
General requirements:
Please work together in mixed groups of students from Austria and UK.
The Austrian guys know already the topic and can explain all needed to our guests from UK.
EVERYONE has to work out his own solution, but working together in your group is better for quick understanding by learning from the knowledge of the others.
Task requirements:
Your company sells a specific device for € 85,- per unit.
The production costs consist of € 40.000,- per year of fixed costs and € 45,-of variable costs per unit.
Last year it was possible to sell 12.000 units of the device.
At the end of last year some of the machines has been renewed. Therefore the fixed costs per year went up to € 50.000 per year.
You assume it will again be possible to sell 12.000 units of the device this year.
If you want to realize the same profit as last year you have to increase either the selling price of your product or you have to decrease your variable (operational) costs per unit to produce your product or both of them by a certain amount to reach the profit aim.
Let’s start to deal with increasing of the selling price because it is planned to offer additional features for the device for our customer. The investment makes it possible and the marketing department confirms the general interest of the market for this new features.
a) By which percentage has the selling price to be increased to yield the same profit as last year?
b) After that how high is the profit if the number of sold devices could be increased by 20% additionally as result of a marketing campaign?
c) How high is the profit if the number of sold devices decreases by 20% because a competitor launches a similar product with a nice price?
d) Please provide the full calculation in a transparent way for a presentation by you.
Please draw a diagram and explain your solution based on your graph.
Please use as scaling factor for the x-axis sfQ = 100units /cm
and as scaling factor for the y-axis sfC = € 10.00 / cm
Requirements for cooperation, individual documentation & preparation for presentation:
Please document your calculation. Please use a squared paper in landscape format for drawing of the diagram. Please prepare yourself for a presentation of your solution you worked out.
You can use the document projector for presenting your elaboration (calculations and diagram).
Drawing by lot for presentation:
At the end we want to draw by lotto appoint two groups to give us a presentation of their solution.
Good luck and success