Читать книгу Cost Accounting For Dummies - Kenneth W. Boyd - Страница 82

If one product’s sales are lower than planned, you can still reach your target net income. Higher sales in one product can make up for lower sales in another product.

For example, say the economy is bad, and customers aren’t eager to buy Pristine wood, so you sell only 1,600 units. The profit calculation is

 Profit = $50 × (1,600) – $30 × (1,600) – $30,000

 Profit = $80,000 – $48,000 – $30,000

 Profit = $2,000

Your target net income for Pristine wood is $5,000, so you’re $3,000 short of your goal. To reach your total target net income, maybe you can shift that $3,000 profit “burden” to Sturdy wood.

To determine how much more you need to sell, just change the Sturdy wood profit to $8,000, and compute the new number of units sold:

 $8,000 = (units × $25) – (units × $18) – $25,000

 $8,000 = units × $7 – $25,000

Finish the calculation. The number of units to reach your profit goal is $33,000 divided by $7. Therefore, if you sell 4,715 units of Sturdy wood, you generate $8,000. Your total target net income of $10,000 is based on $2,000 from Pristine wood and $8,000 from Sturdy wood.