Pricing product. I only need the point 3 to be done.
A calendar manufacture Kalenteri Oy has asked for SAMK students to help them to evaluate their current pricing structure for two of their biggest products. Until now the company has used contribution pricing, and the fixed costs have been applied to each product as a percentual estimate. But they think that there is something wrong in their product pricing and want to know the actual cost structure in more detail. The marketing manager provides the following data for you for year 2017: Budget for 2017 Ordering Supervising Packaging Estimated Overhead 120 000 100 000 150 000 Driver Purchase requisitions Labor Hours Orders Actual results for 2017 Actual purchase requisitions Actual labor hours Actual orders Calendar A 2 000 15 000 Calendar B 1 000 5 000 1 200 800 TASK QUESTIONS (Return you reply in Moodle): 1.) You are asked to calculate the overhead cost applied in each overhead category, using the actual results. Ordering Supervising Packaging 2.) You are asked to calculate the total overhead cost applied for each product in 2017: Calendar A Calendar B Actual overheads for 2017 Ordering Supervising Packaging 3.) Now that you solved the issues of dividing the overhead for each product, the sales manager asks you to help him with pricing. He gives you the following data: Sales estimate for 2018 Unit variable cost Contribution margin Calendar A 6 400 pcs 3,90 40% Calendar B 18 000 pcs 2,40 40 % Show him your calculation and suggest him the price for each calendar. 1) calculate the overhead cost applied in each overhead Category, using the actual results. Actual Resulst: "Actual purchase requisitions 2000 + 1000 = 3000 reg. Actual labour hour 15000 + 5000 200ooh Actual orders 2000 orders Overhead cast: Ordering 120000 800 + 1200 = 1 40 /ocean 3000 reg supervising 100000 5 1 20oooh Packaging 75/ord 150 000 2000 ord. A .2) Calculate the total overhead cost applied for each product Actual Overheads Calendar Calendar B for 2017 Ordering 20024X 40hi 80000 to 1000mx 40 = 40.000 Supervising 15000bx 5 th 75000 500 oh x5t/h = 2500 t Packaging 800ond X 7560000 12000d x 45 tlord 290000 215000 132500 A calendar manufacture Kalenteri Oy has asked for SAMK students to help them to evaluate their current pricing structure for two of their biggest products. Until now the company has used contribution pricing, and the fixed costs have been applied to each product as a percentual estimate. But they think that there is something wrong in their product pricing and want to know the actual cost structure in more detail. The marketing manager provides the following data for you for year 2017: Budget for 2017 Ordering Supervising Packaging Estimated Overhead 120 000 100 000 150 000 Driver Purchase requisitions Labor Hours Orders Actual results for 2017 Actual purchase requisitions Actual labor hours Actual orders Calendar A 2 000 15 000 Calendar B 1 000 5 000 1 200 800 TASK QUESTIONS (Return you reply in Moodle): 1.) You are asked to calculate the overhead cost applied in each overhead category, using the actual results. Ordering Supervising Packaging 2.) You are asked to calculate the total overhead cost applied for each product in 2017: Calendar A Calendar B Actual overheads for 2017 Ordering Supervising Packaging 3.) Now that you solved the issues of dividing the overhead for each product, the sales manager asks you to help him with pricing. He gives you the following data: Sales estimate for 2018 Unit variable cost Contribution margin Calendar A 6 400 pcs 3,90 40% Calendar B 18 000 pcs 2,40 40 % Show him your calculation and suggest him the price for each calendar. 1) calculate the overhead cost applied in each overhead Category, using the actual results. Actual Resulst: "Actual purchase requisitions 2000 + 1000 = 3000 reg. Actual labour hour 15000 + 5000 200ooh Actual orders 2000 orders Overhead cast: Ordering 120000 800 + 1200 = 1 40 /ocean 3000 reg supervising 100000 5 1 20oooh Packaging 75/ord 150 000 2000 ord. A .2) Calculate the total overhead cost applied for each product Actual Overheads Calendar Calendar B for 2017 Ordering 20024X 40hi 80000 to 1000mx 40 = 40.000 Supervising 15000bx 5 th 75000 500 oh x5t/h = 2500 t Packaging 800ond X 7560000 12000d x 45 tlord 290000 215000 132500
