CVP Analysis Project
Established in 1963 in Datura, Italy, Datura, Ltd., is an international importer-exporter of pottery with distribution centers in the United States, Europe, and Australia. The company was very successful in its early years, but since then, its profitability has steadily declined. As a member of a management team, you will gather information for Datura’s next strategic planning meeting, and you have been asked to review its most recent contribution income statement, which appears below.
Datura, Ltd. |
||||
Contribution Income Statement |
||||
For the Year Ended December 31, 2004 |
||||
Sales Revenue |
€ 13,500,000 |
|||
Less Variable Cost |
||||
Purchases |
€ 6,000,000 |
|||
Distribution |
2,115,000 |
|||
Sales Commissions |
1,410,000 |
|||
Total Variable Costs |
9,525,000 |
|||
Contribution Margin |
€ 3,975,000 |
|||
Less Fixed Cost |
||||
Distribution |
€ 985,000 |
|||
Selling |
1,184,000 |
|||
General and Administrative |
871,875 |
|||
Total Fixed Cost |
3,040,875 |
|||
Operating Income |
€ 934,000 |
In 2004, Datura sold 15,000 sets of pottery.
Complete Part 1:
101papers.com is always working towards customer satisfaction. Our professional academic writers always aim at producing comprehensive papers that possess quality and originality at pocket-friendly prices. Students are assured that all their private information is safe with us.
101papers.com provides a system where students can request for money-back in case they cancel the order or in the rare instances of dissatisfaction. The refund policy adheres to the company’s term and conditions on money-back.
Read moreWhile providing the best professional essay writing services, we guarantee all our students of plagiarism-free papers. All papers produced by our professional academic writers are checked against all web resources and previously completed papers to avoid plagiarism.
Read moreIn our urge to provide the best professional essay writing services, we guarantee students of free revision policy. The free revision policy is a courtesy service where students can request for unlimited for their completed papers. We always aim at achieving 100% customer satisfaction rates. The free revision policy is one among many of our major advantages.
Read moreAt 101papers.com, every student is entitled to total security. Our professional academic writers are always committed to protecting all private information of our customers. We do not share any personal information with third parties. Additionally, we provide safe systems for all online transactions.
Read moreWorking with us is the greatest step towards achieving all your academic goals. We always deliver the best professional essay writing services as promised. We, therefore, expect all students to work cooperatively with us, as we work towards achieving our goal, your satisfaction. This way, all services will be delivered accurately and on time.
Read more