Those materials that become an integral part of the product andthat can be conveniently traced directly to it.3 DMCostClassificationsDirect Material Number 8 Chicken Number 9 Chicken Sunsal Chicken Barbecue Chicken Fire Chicken Barbecue Smoke Chicken Cass Beer Soju Like the first time Chamisul Fresh Maesil liquor sparkling Pepsi big medium
VMOHManufacturing costs that cannot be traced directly to specific units producedProportional to activityManufacturing Overhead3CostClassificationsBreading ch1Packed RadishChicken vinyl (package)Sauce caseSoy sauceFrying oilWipesNew Chicken BoxRice cakeBetter MixTiba SauceMustard SauceNew sunsal BoxTiba saltShopping bag boxCoke VinylSunsal teriyaki SauceAluminum foilTiba Shopping bagOnly one box
FMOHFlyers (marketing)Motorcycle oilElectricity taxGas taxWater taxRentDeliver man wageConstant in totalManufacturing OverheadManufacturing costs that cannot be traceddirectly to specific units produced3CostClassifications
Revenue is based on an rough estimate that the shop owner provided. Because of the limited knowledge onmonthly revenue, the number of chickens sold also had to be estimated.Tiba chickens has steady quarterly sale of 1800 sets = BEP calculation.(Hypothetical set of chicken + beverages = 20,000won)Plansto trigger Higher salesSurprisingly low BEPTiba is quite flexible in its sales!More than half of its sales is pure profitit uses only 85% of its direct materials purchased, it isdesirable for Tiba to make more efficient utilizationpurchaseusesBEP
surpass the BEP after selling about 500 sets of chicken in a quarteraverage sales is about 1800it would be able to bring the number up to 2000 with promotionsthat wont do any harm to the total sales of the shop.Revenue is based on an rough estimate that the shop owner provided. Because of the limited knowledge onmonthly revenue, the number of chickens sold also had to be estimated.Tiba chickens has steady quarterly sale of 1800 sets = BEP calculation.(Hypothetical set of chicken + beverages = 20,000won)Plansto trigger Higher salesmonthly promotionssell chickens at a lower priceSpecific day of the monthstimulate purchase.
AssumptionNext quarter budget was analyzed by standard cost of current quarter budgetPriorQuarterNextQuarterCurrentQuarter
Problem analysis⇒ Expected usage > actual usageNeed to purchase lower quantity of⇒ Expected price > actual priceCan generate marginal cash flowDMQV & VOEVDMPV & VOSVfavorable unfavorablealcohol&beveragechickenVMOHfavorable unfavorable2/43/44/44/4chicken chickenchicken chicken chickenVMOHVMOHVMOHVMOH VMOHalcohol&beveragealcohol&beverage alcohol&beveragealcohol&beveragealcohol&beverage2/43/44/42/43/44/4⇒ Expected usage < actual usageThere can be lack of⇒ Expected price < actual priceThere may be problem with cash flow
2012 ¼ Master budgetCan lower budget311,605won+20-51 -31Drink(alcohol+beverage)Quarter average purchase 2,881+(maximum-minimum 1,688) = 4569 purchase645(unit price) * 4569 = 2,947,005wonChickenQuarter average purchase 2084chicken+(maximum-minimum 213chicken) = 2297chicken purchase4048(unit price) * 2297 = 9,298,256wonMax = ¼ quarter 2,180 * 4344(won) = 9,469,500won= 9,469,920wonLack of 171,664won in budgetWe should add 200,000won in budgetMax = 2 quarter 3,048 * 726(won) = 2,214,000wonUsing 2,435,300won budgetWe can lower 511,605won+Max10%
2012 ¼ Master budgetLabor Cost2 part time workerPM12:00 ~ Am 1:00 13hour5000won/hour, 30 day2*13*5000* 30= 11,700,000wonIt’s about Chicken industry!!!We don’t need all 2 workers at opening, endingWe don’t need 30day workersWe don’t need all 2 workers at PM 2:00~4:00If we lower this labor costWe can make More profit!!!
Set Menu?!Beer + ChickenTiba Two Chicken indicates, the set must beconsisted of more than 2 chickensBest Matching!!!
Average Profit per 1 bottle of 소주 : 3000-1200=2800Average Profit per 1 draft beer : 20000/500=80 63000/80=787.5 3000-787.5=2212.5Average Profit per 1 chicken : 13000-3800(avg)=9200Lowest Profit in original set menus (Profits may differ)18000-(3800*2)=18000-7600=new set to be effective it must at leastexceed 11000 won in profits per set.Analysis11000
2 chickens + 1 draft beer=3800*2+2212.5=7600+2212.5=8812.58812.5+11000=19812.5The cheapest price for our new set menu would beThinking of combinations of whichchicken and what beer to includeThe most effective butcheapest price for our Set Menu19812.5To Make