Factory uses mixing and packaginig processes fro production.

Sales comission represents 2.5% of sales price. Sale price is 90% higher than unit production cost.
Basic salary of each salesman is 1200 plus social security (apply 35% to obtain all legal benefits)
The sales manager salary is $4500 per month
To deliver each unit to costumers, the transportation fee is $3,5
Due to company's references, all production is sell.
Administration building's depreciation is 1500 per month
The mixing process is done by 2 workers. These workers are in the night shift (10 pm to 6 am), and are paid with the
Every month is calculated with 23 working days and 7 holidays paid.
Another worker is paid per unit produced (11 per unit) plus legal benefits
Each unit is produced in 2 hours involving the 3 workers.
Every year a staffing is given to every worker, at a cost of 300 (per year)
The basic salary of the quality personnel is 1000 per month
The compnay's normal capacity is determined by direct labor and equipment depreciation (5000 per year)
The cost of the consumed energy used by the mixing equipment is $1,5 per unit; meanwhile the maintainance cost p
The materials are provided by a supplier located in City A. 45 kg per unit are consumed. This product has a cost of 7
For the packaging process, is required one worker, who is pais a basic salary plus legal benefits.

1. Number of units produced per month

23 days per month
1 shift per day
8 hours per shift
0.5 units per hours
92 UNITS PER MONTH

2. production cost and operation expenses

PRODUCTION COST
item quantity cost per month total per month
raw material 4140 7 28980
salary 3 400 1200
legal benefit 3 140 420
another worker 92 11 1012
staffing 4 25 100
salary of quality personnel 1 1000 1000
Energy 92 1.5 138
Maintainance 92 4 368
equipment depreciatoin 1 416.67 416.67
total 33634.67

3. Unit production cost 365.59

5. Income per month 63905.87
duction cost.
al benefits)

to 6 am), and are paid with the minimum salary (400 per month) with all the legal benefits (around 35% of basic salary)

iation (5000 per year)

anwhile the maintainance cost per unit is $4
ed. This product has a cost of 7 per kg.
al benefits.

EXTRAS

total costing
incomes
sold out finished product
gross profit
operational expenses
operational profit

OPERATION EXPENSES
item cost per month variable costing
salesman salary 3240 incomes
sales manager salary 4500 sold out finished product
sales comission 1597.65 gross contribution margin
transportation fee 322 variable operatinal expenses
depreciation 1500 total contribution margin
total 11159.65 production fixed cost
operation fixed expenses
4. Sales price 694.63 operation profit

unity contribution margin

operational balance point

security margin
 Fixed Variable
Cost Expense Cost Expense
x
x
x
x

x
of basic salary) x

x
x
x
x
x
x

osting
63905.87
33634.67
30271.20
11159.65
19111.55

costing
63905.87
30498.00
33407.87
1919.65
31488.22
2716.67
9240
19531.55

342.2632609

34.96918318
100%