SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
HI-BEE RESOURCES CVP & Incremental Analysis.pptx
1. HI-BEE RESOURCES
COST VOLUME PROFIT &
INCREMENTALANALYSIS
Bivian Anak Wilter
Louis Maxkugger Anak Chasing Kasan
Yvone Felicia Anak Dilen
Managerial Accounting (ACC720)
2. About the Company
• Hi-Bee Resources is a (SME) co. that
specializing in the production of honeybee
products.
• Owned by Mr Raymond Tan, 35.
• Established in 2012
• Located in Borneo Highland
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Managerial Accounting (ACC720)
3. Mission & Vision
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Managerial Accounting (ACC720)
Mission Vision
• Pledge to deliver honey that is free from
from additives, antibiotics, and
pesticides. By maintaining high standards
standards of purity, we aim to provide
our customers with a truly authentic and
and delightful honey experience.
• Ensure High-Quality, Locally Sourced Bee
Bee Products
• Deliver Exceptional, Ethically Sourced Bee
Sourced Bee Products
• Strive to be the standard-bearer for a
bee-centric world, where the sweet
rewards of nature are shared by all.
4. Objectives for the Case Study
I. To do Cost Volume Profit (CVP) analysis on the honeybee production costs of Hi-Bee
Resources.
II. To conduct iterative analysis using the special-order scenario before deciding
whether to accept or reject the order.
III. Examine the breakdown of variable and fixed costs associated with producing and
selling Hi-Bee products during the spring seasons of 2023 and 2024.
5. Financial Objectives
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Managerial Accounting (ACC720)
I. To increase revenue by 40% in 2024 (during the spring season).
II. To sales 250 units of honey product during spring season for the year 2024.
III. To accept or reject special order of 50 units for birthday door gift.
6. Cost Structure of the Company
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Managerial Accounting (ACC720)
Current Variable and Fixed cost in Year 2023
7. Direct Material
2023
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Managerial Accounting (ACC720)
Materials Yearly
Cost (RM)
Beehive Box (Stingless Bee) 500 x 25 Units = 12,500
Beehive Box (Farm Bee) 1,500 x 25 Units = 37,500
Beekeeping Suits 25 x 2 Units = 50.00
Smoker Fuel Beekeepers 40 x 2 Units = 80.00
Wood Honey Brush 10 x 4 Units = 40.00
Hook Scraper 13 x 4 Units = 52.00
Comb cutting knife 80 x 4 Units = 320.00
Total RM50,542.00
Total Cost per month RM4,212.00
8. Cost Per Unit
2023
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Managerial Accounting (ACC720)
Description RM
Variable Cost 8,412.00
add: Fixed Cost 2,080.00
Total Cost 10,492.00
Assuming 200 units during the
spring season month
10,492 / 200
Cost per unit 52.46
9. Mark Up & Selling Price
2023
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Managerial Accounting (ACC720)
Description RM
The desired mark-up is at 40% (40% x 52.46) 20.98
Selling price per unit (52.46 + 20.98) 73.44
Sales = 200 units x Selling Price (74.00) 14,800.00
10. Contribution Margin
2023
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Managerial Accounting (ACC720)
Contribution margin income statement (Monthly)
Contribution
margin
Unit selling price for 200
units
Variable cost per unit at 200 units.
Description Total (RM) Per Unit (RM)
Sales (200 units) 14,800.00 74.00
less: Variable cost 8,412.00 42.06
Contribution Margin 6,388.00 31.94
less: Fixed Cost 2,080.00
Nett Income 4,308.00
Description Calculation RM
Selling Price RM52.46 + (RM52.46 x 40%) 73.44
Description Calculation RM
Variable cost per unit 8,412.00 / 200 units 42.06
Description Calculation
Contribution margin per
unit
73.44 – 42.06 RM31.38
Contribution margin
ratio
(31.38 / 73.44) x 100% 42.73%
11. CVP Graph in the Year 2023
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Managerial Accounting (ACC720)
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Managerial Accounting (ACC720)
REVISED BREAK-EVEN POINT
Hi-Bee Resources
Descriptions
Monthly
Variable Cost
(RM)
Fixed Cost (RM)
Direct material* 5,012
Direct labor 4,000
Travel and conveyance 250
Packaging 2.20 x 250 bottles = 550
Utilities 200
Rent 1,500
Telephone expenses 100
Depreciation 180
Total RM10,012.00 RM1,780.00
Total Cost RM11,792.00
13. 13
Managerial Accounting (ACC720)
REVISED BREAK-EVEN POINT
Direct Materials Monthly Yearly
Cost (RM)
Wild forest raw honeybee 80/kg x 10kg = 800
Beehive Box (Stingless Bee) 500 x 25 Units = 12,500
Beehive Box (Farm Bee) 1,500 x 25 Units = 37,500
Beekeeping Suits 25 x 2 Units = 50.00
Smoker Fuel Beekeepers 40 x 2 Units = 80.00
Wood Honey Brush 10 x 4 Units = 40.00
Hook Scraper 13 x 4 Units = 52.00
Comb cutting knife 80 x 4 Units = 320.00
Total RM50,542.00
Total Cost per month RM800.00 RM4,212.00
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Managerial Accounting (ACC720)
REVISED BREAK-EVEN POINT
Cost per unit after revised
Description RM
Variable Cost 10,012.00
add: Fixed Cost 1,780.00
Total Cost 11,792.00
Production 250 units
Cost per unit 47.17
15. Contribution Margin
2024
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Managerial Accounting (ACC720)
Contribution margin income statement (Monthly)
Contribution
margin
Unit selling price for 250 units.
Variable cost per unit at 250
units.
Description Total (RM) Per Unit (RM)
Sales (250 units) 18,875.00 75.50
less: Variable cost 10,012.00 40.05
Contribution Margin 8,863.00 35.45
less: Fixed Cost 1,780.00
Net Income 7,083
Description Calculation RM
Selling Price RM47.17 + (RM47.17 x 60%) 75.47
Description Calculation RM
Variable cost per unit 10,012.00 / 250 units 40.05
Description Calculation RM
Contribution margin RM75.47 – RM40.05 35.42
Contribution margin ratio (RM35.42 / RM75.47) x 100% 46.93%
16. CVP Graph in the Year 2024
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Managerial Accounting (ACC720)
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Managerial Accounting (ACC720)
INCREMENTAL ANALYSIS
No. Descriptions Calculation Reject Accept Incremental
Analysis
1 Revenues 50 units x RM75 0 3,750.00 3,750.00
2 Variable
Operating Cost
2,000 0 2,000.00 (2,000.00)
Net income 1,750.00
Hi-Bee Resources can accept the special order of 50 units as it profitable
18. CONCLUSION
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Managerial Accounting (ACC720)
• Using CVP analysis and incremental analysis offers valuable insights into the company's
performance and decision-making process.
• Understanding cost structure and break-even points help in price strategies and production
levels.
• CVP analysis determines the break-even point and margin of safety, enabling management to
adjust production and sales strategies.
• Incremental analysis reveals the decision-making process for accepting a special orders, such
as 50 units, resulting in increased profits.
• Overall, these insights enable to make informed decisions and improve its financial
performance, aiming for sustainable growth and industry success.
