The critical volume is determined by the formula. Determining the break-even point: calculation, formula and analysis

Ministry of Education and Science of the Russian Federation

State educational institution of higher professional education

St. Petersburg State Forestry Academy

named after S.M. Kirov

Faculty of Economics and Management

Department of Forest Policy, Economics and Management

Test in the discipline "Economics of the forest sector"

Completed by a FEU student, 2nd year, s/o, advanced education.

Specialty number 080502

Record book number 69103

Checked:

Saint Petersburg

2010-2011
Table of contents

Problem 2.3

Problem 3.4

Problem 5. 5

Problem 6. 6

Problem 7. 7

Problem 8. 8

Problem 9. 9

Problem 10.9

Problem 11. 10

Problem 12. 11

Problem 13. 12

References.. 14

Task 2.

To increase the efficiency and sustainability of the industry, it is planned to increase production volume by 20%. Actual volume - 200 thousand units, unit price C - 700 rubles, unit cost - 580 rubles, incl. fixed costs - 40%.

Required

1. Determine the critical production volume Q cr.

2. Find the change in profit.

3. Compare the percentage changes in volume and profit; explain the reason for their ambiguous percentages.

The critical production volume is calculated using the formula

Q cr = 3 P0S / Ts-3 st lane

where 3 st lane - variable costs per unit; 3 П0С - fixed costs for volume, rub.

200 * 700 = 140,000 thousand rubles. (revenue)

200 * 580 = 116,000 thousand rubles. (total costs)

116000 * 0.4 = 46400 thousand rubles. (permanent)

116000 * 0.6 = 69600 thousand rubles. (variables)

140000 - 116000 = 24000 thousand rubles. (profit)

Q cr = 46400 / 700 – 348 = 131.818 thousand units.

220 * 700 = 154,000 thousand rubles. (revenue)

220 * 348 = 76560 thousand rubles. (variables)

46400 + 76560 – 154000 = 31040 thousand rubles. (profit)

Production volume increased by 9.1% and profit by 22.7%. They are not unambiguous, because with an increase in production, fixed costs in the total share decrease.

Problem 3

Using marginal characteristics (marginal costs - I p, marginal income - D p), establish the feasibility of increasing production volume by 20% under the following conditions:

Production volume - 100 thousand units,

Actual price - 700 rub.,

It is planned to increase the actual price by 5%,

Actual cost - 580 rubles, including fixed costs - 230 rubles.

The advisability of increasing production volume is evidenced by the following expression: I p is less than or equal to D p

Marginal costs are calculated using the formula

I n = I 2 - I 1 / Q 2 - Q 1 = delta I / delta Q

I n = 65000 – 58000 / 120 – 100 = delta 7000 / delta 20 = 350

Marginal revenue is calculated using the formula

D p = D 2 - D 1 / Q 2 – Q 1 = delta D / delta Q

D p = 88200 – 70000 / 120 – 100 = delta 18200 / delta 20 = 910

910 (I p) less than or equal to 350 (D p)

It is advisable to increase production volume.

Problem 4

The district's recycling industry plans to use waste. The volume of raw materials is 50 thousand units, the price of a unit of raw materials is 800 rubles, the yield of products from raw materials is 50%. The waste is planned to be sold at a price of 300 rubles. for a unit. The cost of selling waste is 80% of its price. The share of useful waste is 40% of the volume of raw materials. Useful, marketable waste reduces the costs of the main products.

By what amount will industry profits increase when waste is used?

50 – 50% = 25 thousand units – product yield.

25 * 800 = 20,000 thousand rubles. – cost of production.

50 * 0.4 = 20 thousand units - useful waste.

20 * 300 = 6000 thousand rubles. – cost of waste.

6000 * 0.8 = 4800 thousand rubles. costs of selling waste.

6000 – 4800 = 1200 thousand rubles. profit from waste.

Profit will increase by 1200 thousand rubles. Or by 6%.

Problem 5

The cost of production is 400 rubles, incl.

Remuneration - 120 rubles, of which remuneration for managers - 50%,

Depreciation - 60 rub.,

Material costs - 160 rubles,

Others - 60 rubles, of which fixed costs - 50%. The planned production volume is 10 thousand units. Required

1. Establish an economic-mathematical connection between the cost of production and production volume.

2. Find the critical production volume.

3. Determine the zone of financial stability.

200 thousand rubles. – fixed costs.

200 thousand rubles. – variable costs.

C = a * Q + b = 0.02 * 10 thousand units. + 200 = 400 thousand rubles.

C beat = a + b / Q = 400 / 10 thousand units. = 0.04 rub.

400 * 1.2 = 480 – revenue.

480 rub. / 10 thousand units = 0.048 rub. – unit price.

200 / 0.048 – 0.02 = 7143 units. - critical production volume.

10000 – 7143 = 2857 units. – zone of financial stability.

480 – 343 / 480 = 0.29 or 29% - financial stability zone.

Problem 6

The profitability of products in the industry that processes raw materials mechanically in 2006 amounted to 15.3%.

The profitability of products in the industry that processes raw materials chemically in the same year was 32.4%.

What is the level of profitability of logging industry products, all other things being equal?

The profitability of the products of the logging industry should most likely be positive, since the profitability of the products of the industry that processes raw materials is quite good (they form a chain). The profitability of logging industry products in 2000 was 4.6%, and in 2003. – 1.3%. It often happens that Russia exports untreated wood, but highly processed products are returned, the cost of which is 12-15 times higher than the cost of raw materials. Therefore, we can conclude that the level of profitability of products in the logging industry is not as high as compared to the processing industry

Problem 7

Determine the effect of increasing the level of technical and technological equipment of production in the industry based on the information given below.

Production volume - 200 thousand units.

Actual labor productivity is 500 units per year. It is planned to increase labor productivity by 30%. The actual level of the worker's annual salary is 160 thousand rubles. The increase in the worker's wages is accepted by the student independently according to the theory of accelerated growth of labor productivity compared to wages.

The effect of increasing the level of technical and technological equipment of electrical production is determined by the formula

E = Q * (Ze base - Zepl), where Ze base, Zepl are the base and planned wages per unit of production, respectively.

200000 / 500 = 400 - workers

400 * 160 = 64000 - salary

500 * 1.3 = 650 - increased labor productivity by 30%.

650 * 400 = 260000 - production volume

The annual salary of a worker is 184 thousand rubles. (+24 thousand rubles or 15%).

Task8

The industry's production program is 60% below production capacity. The demand for the industry's products is not being met.

State the reasons for underutilization of production capacity. How long can the industry maintain this policy without experiencing financial difficulties? What pricing policy does the industry follow?

The reasons for the underutilization of production capacity are that the enterprise was created based on higher production volumes and demand for these products. Questions arise whether the enterprise is profitable or not, how much downtime costs and what is the profitability of underutilized capacity. If this is short-term downtime or seasonal, then it’s possible

Estimation of critical sales volume

1. Critical sales volume, margin of financial strength of the enterprise, production leverage

1.1 Economic content of assessing the critical sales volume and financial safety margin

For every enterprise (especially a new one), it is extremely important to know at what point it will begin to make a profit. The critical sales volume is the output at which the enterprise's income is equal to its expenses.

The critical sales volume is the minimum sales revenue required by an enterprise, which allows it to ensure break-even sales in unfavorable conditions of demand for its products (works, services). Determining the critical sales volume is of practical importance in cases where the price level for products does not provide the enterprise with a profit from sales, or when low demand for products does not make it possible to sell such a quantity that would be sufficient to exceed revenues over costs.

Break-even (critical) production volume is calculated from equation (1):

P * Q = CF + CV * Q, (1)

where P is the price of a unit of production; Q - number of units produced (sold products); CF - fixed costs in unit costs (specific); CV - variable costs in unit costs (specific).

Break-even production volume can be calculated in several ways.

.Minimum output volume in physical terms (2):

Q min=CF / (P-CV) (2)

Minimum output volume in value terms (3):

QP=CF / (1-CV/P), (3)* P = CF + CV * Q, (4)

where Q * P= N - sales revenue; CV/P - unit variable costs or the share of variable costs in the price.

The critical sales volume can be calculated using the marginal income (MR) value (5):

MD = N - CV (5)

To determine the impact of structural changes on the critical volume of production, the following expression (7) is used:

CF/(?D I*md i )% (7)

where Di is the share of each type of product in the total volume.

md i - specific marginal income.

Marginal income can be calculated not only for the entire volume of output as a whole, but also for a unit of each type of product (specific marginal income). The economic meaning of this indicator is the increase in profit from the release of each additional unit of production (8):

md i = (N-CV) / Q = P - CV, (8)

where Q is the volume of sales; P - unit price; CV - variable costs per unit of production.

If this indicator is negative, this indicates that the revenue from the sale of the product does not even cover variable costs. Each subsequent produced unit of this type of product will increase the total loss of the organization. If the ability to significantly reduce variable costs is very limited, then the manager should consider removing this product from the range of products offered by the organization.

Dividing costs into constant and variable, calculating marginal income makes it possible to determine the impact of production and sales volume on the amount of profit from the sale of products, work, services and the sales volume from which the enterprise makes a profit. This is done on the basis of an analysis of the break-even model (the “cost-volume-profit” system).

The dependence of the volume of output and sales of products on the ratio of costs and sales price is used to justify plan targets. If fixed and variable costs per unit of production are known, as well as the amount of planned profit, then the required sales volume is determined by the formula: The dependence of the volume of output and sales of products on the ratio of costs and sales price is used to justify planned targets. If fixed and variable costs per unit of production are known, as well as the amount of planned profit, then the required sales volume is determined by the formula:

Q pl = (СF+Rpl )/ (P-CV), (9)

where Rpl is the planned amount of profit.

Analysis of the break-even point is one of the important ways to solve many management problems, since when combined with other methods of analysis, its accuracy is quite sufficient to justify management decisions in real life. How far the company is from the break-even point shows the margin of financial strength. This is the difference between actual output and output at the break-even point. The percentage ratio of the financial safety margin to the actual volume is often calculated. This value shows by what percentage the sales volume can be reduced in order for the company to avoid losses.

That is, the margin of financial strength shows how much sales (production) of products can be reduced without incurring losses.

The excess of real production over the profitability threshold is a margin of financial strength of the company:

Margin of financial strength = Revenue - Profitability threshold (10)

The profitability threshold (break-even point, critical point, critical volume of production (sales)) is the volume of sales of a company at which sales revenue fully covers all costs of production and sales of products. To determine this point, regardless of the methodology used, it is necessary first of all to divide the projected costs into fixed and variable.

Thus, maximizing profit by changing the share of variable and fixed costs, determining the break-even point and the margin of financial strength, opens up the opportunity for the organization to plan for the future the size of the increase in profit depending on economic success in the production of competitive products and take appropriate measures in advance to change this or that side of the magnitude of variable and fixed costs. Forecast calculations of profit are important not only for the enterprises and organizations themselves that produce and sell products (services), but also for shareholders, investors, suppliers, creditors, and banks associated with the activities of this organization. Therefore, planning the optimal amount of profit is the most important factor in the successful activities of enterprises and organizations during the formation of a market economy.

1.2 Methods for analyzing the critical sales volume and the margin of financial strength of an enterprise

Margin analysis (break-even analysis) is widely used in countries with developed market relations. It allows you to study the dependence of profit on a small range of the most important factors and, on the basis of this, manage the process of forming its value.

The main capabilities of marginal analysis are to determine:

-break-even sales volume (profitability threshold, cost recovery) at given ratios of price, fixed and variable costs;

-safety (break-even) zones of the enterprise;

-the required sales volume to obtain a given amount of profit;

-critical level of fixed costs at a given level of marginal income;

-critical selling price for a given sales volume and the level of variable and fixed costs.

With the help of marginal analysis, other management decisions are justified: the choice of options for changing production capacity, product range, price for a new product, equipment options, production technology, purchasing components, assessing the effectiveness of accepting an additional order, etc.

Main stages of analysis.

Collection, preparation and processing of initial information necessary for analysis.

Determination of the amount of fixed and variable costs for production and sales of products.

Calculation of the values ​​of the studied indicators.

Comparative analysis of the level of the studied indicators.

Factor analysis of changes in the level of the studied indicators.

Forecasting their magnitude in a changing environment.

Marginal income (profit) is the difference between sales revenue (excluding VAT and excise taxes) and variable costs. Sometimes marginal income is also called the coverage amount - this is the part of the revenue that remains to cover fixed costs and generate profit.

The higher the level of marginal income, the faster fixed costs are recovered and the organization has the opportunity to make a profit.

Marginal income (M) is calculated using the formula:

where N is sales revenue;

CV - total variable costs.

Marginal income can be calculated not only for the entire volume of output as a whole, but also for a unit of each type of product (specific marginal income). The economic meaning of this indicator is the increase in profit from the release of each additional unit of production:

md i = (N-CV) / Q = P - CV, (14)

where md i - specific marginal income; Q - sales volume; P - unit price; CV - variable costs per unit of production.

Dividing costs into constant and variable, calculating marginal income makes it possible to determine the impact of production and sales volume on the amount of profit from the sale of products, work, services and the sales volume from which the enterprise makes a profit. This is done on the basis of an analysis of the break-even model (the “cost-production-volume-profit” system).

The break-even point is the volume of sales at which the income received provides compensation for all costs and expenses, but does not provide the opportunity to make a profit, in other words, this is the lower limit of the volume of output at which profit is zero. Price determination in this method is based on the calculation of fixed and variable costs.

Fixed costs include costs that are fixed and do not depend on the volume of production (even if output is zero, they remain the same).

Fixed costs include:

1) rent,

2)fixed utility bills,

)patents,

)licenses,

)depreciation,

)major repairs,

)separate taxes, etc.

Variable costs include costs that are directly proportional to the volume of production (at zero production, variable costs are also zero). These include the consumption of raw materials and supplies, the wages of the main workers and charges for it, routine repairs, etc. The sum of fixed and variable costs forms the full or total costs.

The profitability threshold is such sales revenue at which the company no longer has any losses, but does not yet make a profit.

The margin of financial strength is the amount by which a company can afford to reduce revenue without leaving the profit zone.

Thus, in practice, variable costs are more deeply detailed into groups of variable production, general production, general and other expenses. This entails the need to calculate several indicators of marginal income, from the analysis of which a decision is made about which groups of expenses can be most significantly affected by the impact on the final financial result.

1.3 The essence of the industrial leverage mechanism

One of the effective methods of management accounting is the method of analyzing the relationship “cost - volume - profit” (“Cost - Volume - Profit” or “CVP analysis”), which allows you to determine the break-even point (profitability threshold), i.e. the point at which an enterprise's income completely covers its expenses. Carrying out this analysis is impossible without such an important indicator as production leverage (leverage in literal translation - leverage). With its help, you can predict changes in the result (profit or loss) depending on changes in the enterprise’s revenue, as well as determine the break-even point (profitability threshold). A necessary condition for using the production leverage mechanism is the use of the marginal method, based on dividing the enterprise's costs into fixed and variable. As is known, fixed costs do not depend on production volume, but variable costs change with an increase (decrease) in output and sales. The lower the share of fixed costs in the total costs of the enterprise, the more the amount of profit changes in relation to the rate of change in the enterprise's revenue.

Operating leverage is determined using the following formula:

(19)

or, (20)

where EPL is the effect of production leverage;

MD - marginal income;

Zpost - fixed costs;

P - profit.

The value of the production leverage effect found using formula 1 is subsequently used to predict changes in profit depending on changes in the enterprise’s revenue. To do this, use the following formula:

(21)

where DP is the change in profit, in%; B is the change in revenue, in%.

Thus, production leverage is an indicator that helps managers choose the optimal enterprise strategy in managing costs and profits. The amount of production leverage may change under the influence of: price and sales volume; variable and fixed costs and combinations of any of these factors.

2. Analysis of economic indicators of the enterprise LLC Price-Universal

2.1 Brief description of the enterprise Price-Universal LLC

Limited Liability Company "Price-Universal" is located at Naberezhnye Chelny, village. Hydroelectric power station, Korchagina Blvd., 11, office 55.

The main activities of Price-Universal LLC are:

1)production and sale of finished PVC products (windows, doors, loggias);

2)delivery and installation of PVC products;

)interior and exterior finishing of window and door openings after installation;

)Providing services for measuring window and door openings.

The high level of quality of the company’s products is ensured by:

-using PVC profile from Rehau. Four-chamber and five-chamber profile systems provide high reduced heat transfer resistance.

-Well-established modern production, equipped with high-precision equipment from the best European manufacturers. Strict adherence to technological standards and quality control.

The company Price-Universal LLC is:

-the ability to choose from carefully selected high-quality profile systems;

-environmentally friendly technology for manufacturing lead-free plastic windows;

-regular technological control over the production of PVC windows and expansion of the range of components for plastic windows;

-quality control system at every stage of production;

-warranty service for plastic windows for a year;

-active and competent employees in the installation of plastic windows, glazing of balconies and glazing of loggias.

The design capabilities of the presented profile systems are practically unlimited, which allows you to implement any design and color solutions. This is important for residents of non-standard series of houses and cottage communities.

The Company's mission is to create and supply high-quality products and services on the market of translucent structures that will help create comfort in the world of people, and will also ensure the creation of a favorable atmosphere in the life of every person.

Providing guarantees that the supplied products do not consume effort, resources and time during the entire period of their operation; is of high quality and reliable, convenient and easy to use.

Providing guarantees that the service offered by the Company will be assessed by consumers as the highest and professional, and will also form the basis for continuous improvement of operational efficiency.

Achieving the most effective level of cooperation with external (clients, partners) and internal customers; pooling their resources and talents, ensuring the development of the Company, creation and preservation of jobs; as well as the steady growth of consumer demand in the market of translucent structures, allowing the Company to maintain its leading position in the long term.

The enterprise has a linear management system. This means direct subordination of all site workers to the team leader. In this case, the system of management links, in general, coincides with the system of production process links.

The linear system ensures a clear formulation of tasks (issuing tasks), full responsibility of workers for the results of their work. But at the same time, it limits the possibilities of using competent specialists in the management of individual areas.

The structure of the enterprise is presented in Figure 2.1.1.

Rice. 2.1.1. Organizational management structure of Price-Universal LLC

Analyzing the main economic indicators of Price-Universal LLC for 2009-2011, we can conclude that the company experienced a downward trend in revenue from product sales, which began in 2010, which amounted to 1339.00 thousand rubles. in absolute and 83.34% in relative terms.

Over the three-year period, the trend in changes in the cost of goods sold was similar to changes in sales revenue.

Table 2.1.1. Main technical and economic indicators of LLC "Price-Universal" for 2009 -2011gg. in thousand rubles

Name of indicator 2009 2010 2011 Value Absolute. changeGrowth rate, %ValueAbsolute. Change Growth rate, % 12345678 Sales revenue, thousand rubles 8038.006699.00-1339.0083.345966.00-733.0089.06 Cost of products sold, thousand rubles 1875.00 1497.00-37879.841008.00- 489.0067.33 Profit from sales, thousand rubles 6163.005202.00-961.0084.414958.00-244.0095.31 Net profit, thousand rubles 3638.00-624.00-4262.0017.152509 ,003133.00402.08 Average annual cost of fixed assets, thousand rubles 65.009582.009517.0014741.5410588.001071.00110.50 Capital productivity, rub./ rub. 123.660.69-122.970.560.560.1381.16 Capital intensity, rub./rub. 0.0081.431.42217875.001.770.34123.78 Capital-labor ratio, thousand rubles/person 8.1251197.751189.6314741.541323.50125.75110.50 Average annual cost of working capital, thousand rubles 12450.005619 .00- 6831.0045.136673.001054.00118.76 Working capital turnover ratio, in turnover 0.641.190.55185.940.89-0.3074.79 Payroll fund, thousand rubles 80.0091.0011.00113.7595.004, 00104.40Average salary, thousand rubles 10.0011.881.88118.8011.880.00100.00Average number of employees, people 880100.0080100.00Sales profitability, %0.770.780.01101.300.830.05106.41Econ ohmic profitability (of assets ), %0.24-0.04-0.2816.670.150.19375.00

In 2010, the cost of the enterprise decreased by 378.00 thousand rubles. compared to 2009, and in 2010 there was a decrease of 489 thousand rubles. by 2010. At the same time, the growth rate of cost in 2010 relative to 2009 (79.84%) does not exceed the growth rate of revenue from product sales (83.34%), and in 2011 relative to 2010 the growth rate of revenue is 89.06%, and the cost growth rate is 67.33%. At the same time, there is a significant decrease in profit from product sales in 2010 by 961 thousand rubles. or by 84.41% compared to 2009, and in 2011 compared to 2010 there was a decrease in the amount of profit from sales by 244.00 thousand rubles, which is a negative trend.

In 2010, the net profit of the enterprise decreases by 4262 thousand rubles. or by 17.15% compared to 2009

In 2011, compared to 2010, its value increased by another 3,133 thousand rubles. due to an increase in profits from product sales due to a reduction in other company expenses by almost 20 times.

The cost of fixed assets at the enterprise in 2010 increased by 14741.54% compared to 2009 or by 9517 thousand rubles. In 2011, their cost increased by another 1,071 thousand rubles. relative to 2010, which amounted to 110.50% growth rate.

The increase in value is due to the company's acquisition of new fixed assets. Accordingly, the enterprise's capital-labor ratio is steadily increasing, and the indicators are changing similarly.

The capital productivity indicator decreased in 2010 compared to 2009 by 99.44%, but in 2011 compared to 2010 it decreased, the rate of decrease was five times lower. As a result, the relative growth was 81.16%.

The level of capital intensity increased from 0.008 rubles/ruble. to 1.43 rubles/rubles, the growth rate was 17875%. In 2011, the value of the indicator stabilized and amounted to 1.77 rubles/ruble. It follows that the enterprise has a fairly efficient use of fixed assets, therefore, there has been a favorable trend towards increasing efficiency.

There is an increase in the company's working capital. In 2010, the company's value of working capital decreased by 6,831 thousand rubles. or by 45.13% compared to 2009. In 2011, their value increased by 1,054 thousand rubles. or by 18.76% compared to 2010. The increase in working capital occurs mainly due to an increase in short-term financial investments and material assets.

The working capital turnover ratio in 2010 compared to 2009 increased by 0.55, which amounted to 185.94%, but in 2011 compared to 2010 it decreased by 0.30, i.e. 74.79%. This indicates an emerging trend towards a slowdown in the turnover of working capital and a slight decrease in the efficiency of their use in the enterprise.

There is an increase in the wage fund in the company due to the stable number of employees, which has not changed for three years. In 2010 it increased by 11 thousand rubles. At the same time, the average monthly salary per employee is constantly increasing: in 2010, its growth amounted to 1.88 thousand rubles. compared to 2009, in 2011 it remained unchanged compared to 2010.

Thus, during the period under study, labor resources were used at Price-Universal LLC quite effectively. The level of production profitability and economic profitability of the enterprise in the reporting period increased due to an increase in net profit. The analysis showed that the activities of Price-Universal LLC were successful during the reporting period, as the company experienced a reduction in costs and other expenses, an increase in the capital-labor ratio due to the commissioning of new fixed assets, an increase in the profitability of sales and the economic profitability of the enterprise.

2.2 Analysis of break-even point, financial safety margin and production leverage

When managing fixed costs, it should be borne in mind that their high level is largely determined by industry characteristics of activity, which determine different levels of capital intensity of manufactured products, differentiation of the level of mechanization and automation of labor.

In addition, it should be noted that fixed costs are less amenable to rapid change, so enterprises with high production leverage lose flexibility in managing their costs.

The initial data for the enterprise Price-Universal LLC for calculating the critical sales volume and the margin of financial strength, formed on the basis of the tables given above, are presented in Table 2.2.1.

Table 2.2.1. Initial data for calculating KOR, PR, ZFP and MB

No.IndicatorUnit. unit. Value of indicator 1. Price of double-glazed windows, thousand. rub./pcs. 7.22. Sales volume pcs. 2503. Revenue from sales thousand. rub. 18004. Full cost for the billing period (1st quarter) thousand. rub. 15004.1. Variable costs thousand. rub. 10854.2. Fixed costs thousand. RUB 4155. Variable costs per 1 product, thousand. RUB 4.34

The calculation data for KOR, PR, ZFP and MB for products are summarized in Table 2.2.2.

Table 2.2.2. The value of indicators KOR, PR, ZFP and MB for double-glazed windows

No.IndicatorUnit. unit. Indicator value 1. Critical sales volume (CSV) pcs. 1452. Profitability threshold (PR) thousand. RUR 10,443. Financial strength reserve (FS) thousand. rub. 7154. Safety margin (MB) pcs. 105

Here is a calculation of break-even points for double-glazed windows.

KOR = 415 thousand rubles / (7.2 - 4.34) thousand rubles / piece. = 145 pcs.

PR = 145 pcs. * 7.2 thousand rubles/pcs. = 1044 thousand rubles.

ZFP = 1800 thousand rubles. - 1085 thousand rubles. = 715 thousand rubles.

MB = 250 pcs. - 145 pcs. = 105 pcs.

Thus, with a sales volume of double-glazed windows of 145 pcs. and revenue, respectively, 1044 thousand rubles, the company Price-Universal LLC reimburses all expenses with the income received, while the profit of the enterprise is zero, and the margin of financial strength for the double-glazed window will be 715 thousand rubles.

The company Price-Universal LLC produces and sells one product - PVC double-glazed windows. Below are the data characterizing its activities (see Table 2.2.3):

Table 2.2.3. Initial data for calculating production leverage

1. Sales amount (revenue) 18002. Variable costs10853. Marginal income (item 1 - item 2)7154. Fixed costs4155. Profit (item 3 - item 4)3006. Volume of goods sold, pcs. 2507. Price per unit of goods, RUB 72,008. Effect of production leverage (item 3: item 5)2.384

Using the mechanism of production leverage, we will predict changes in the profit of the Price-Universal LLC enterprise depending on changes in revenue, and also determine the break-even point. For this enterprise, the effect of production leverage is 2,384 units (715/300). This means that if the company’s revenue decreases by 1%, profit will decrease by 2.384%, and if revenue decreases by 41.95%, the company will reach the profitability threshold, i.e. profit will be zero. Let's assume that revenue decreases by 10% and amounts to 1,620 thousand rubles. (1800-1800 * 10: 100). Under these conditions, the enterprise’s profit will decrease by 23.84% and amount to 228.48 thousand rubles. (300 - 300*23.84: 100).

Let us consider the influence of each factor on the effect of production leverage based on the above example.

An increase in the selling price by 10% (up to 7,920 rubles per unit) will lead to an increase in sales volume to 1,980 thousand rubles, and marginal income to 895 thousand rubles. (1980-1085) and profits up to 480 thousand rubles. (895 - 415). At the same time, the marginal income per unit of goods will also increase from 286 rubles. (715 thousand rubles: 250 pcs.) up to 358 rubles. (RUB 895 thousand: 250 pcs.). Under these conditions, a smaller sales volume will be required to cover fixed costs: the break-even point is 107 units. (415 thousand rubles: 385 rubles), and the safety margin of the enterprise will increase to 143 units. (250 - 107) or by 42.8%. As a result, the company can receive additional profit in the amount of 180 thousand rubles. (480 - 300). At the same time, the effect of production leverage will decrease from 2.38 to 1.87 units (895: 480).

A reduction in variable costs by 10% (from 1085 thousand rubles to 976.5 thousand rubles) will lead to an increase in marginal income to 823.5 thousand rubles. (1800 - 976.5) and profits up to 408.5 thousand rubles. (823.5 - 415). As a result of this, the break-even point (profitability threshold) will increase to 906.11 thousand rubles. , which in physical terms will be 1136 pcs. (906.11: 2.5 thousand rubles). As a result, the safety margin of the enterprise will amount to 2159.1 thousand rubles. (1800 - 906.11) or 864 pcs. (2159.1 thousand rubles: 2.5 thousand rubles). Under these conditions, the effect of production leverage at the enterprise will decrease to 2.016 units (823.5: 408.5).

With a decrease in fixed costs by 10% (from 415 thousand rubles to 373.5 thousand rubles), the profit of the enterprise will decrease to 235 thousand rubles. (1800-1085 - 480) or by 21.66%. Under these conditions, the break-even point in monetary terms will be 1206.03 thousand rubles. , and in physical terms - 167 pcs. (1206.03: 7.2). In this case, the safety margin of the enterprise will correspond to 593.97 thousand rubles. (1800-1206.03) or 82 pcs. (593.97: 7.2). As a result, as a result of a reduction in fixed costs by 10%, the effect of production leverage will be 4 units (715: 180) and compared to the initial level will increase by 1.62 units (2.38 - 4).

Thus, production leverage is an indicator that helps managers choose the optimal enterprise strategy in managing costs and profits. The amount of production leverage may change under the influence of: price and sales volume; variable and fixed costs and combinations of any of these factors. Analysis of the above calculations allows us to conclude that the change in the effect of production leverage is based on a change in the share of fixed costs in the total cost of the enterprise.

When choosing the optimal financial management strategy, the manager must keep in mind that the sensitivity of profit to changes in sales volume can be ambiguous at enterprises that have different ratios of fixed and variable costs. The lower the share of fixed costs in the total costs of the enterprise, the more the amount of profit changes in relation to the rate of change in the enterprise's revenue.

For enterprises seeking to improve the efficiency of economic activity, it is necessary to develop an effective strategy and corresponding tools to substantiate management decisions on the optimal combination of profit, cost and volume of production (performance of work or provision of services). The main goal of a commercial enterprise operating in market conditions is to obtain the maximum possible profit. However, this can be achieved on the basis of a reasonable combination of sales volume and sales price of manufactured products (work, services).

Within the framework of marketing analysis, economic science has developed fairly reliable requirements for substantiating management decisions aimed at achieving the maximum possible profit. The main condition for the use of these approaches is the preliminary division of costs into fixed and variable. To justify a management decision on the implementation of specific activities, it is necessary:

-take into account the limitations caused by the production capacity of the enterprise, the availability of working capital, labor resources, as well as take into account the market needs for each product, taking into account these restrictions, adjust plans, enter into agreements with suppliers of material, technical and energy resources, and also form a portfolio of orders for the produced products;

-assess how the market situation will change with an increase in the production of some goods and a decrease in the production of others; make a forecast of how specific customers (consumers) will react to changes in the range and volume of products;

-conduct an economic analysis of changes in profit and cost of production and sales volume in the event of a possible reduction in prices while simultaneously increasing production output;

-justify the feasibility of maximizing the production of products that have high profitability and provide a large contribution to the formation of the enterprise’s profit;

-develop the most reasonable method for distributing indirect costs and fixed costs of an enterprise between individual types of products in multi-product production;

-carry out a detailed classification of costs into variable and fixed costs with the subsequent distribution of fixed costs by type of product and by cost responsibility centers.

It is necessary to analyze the possibility of obtaining maximum profit from the point of view of demand for products, and to evaluate the profit received from the point of view of break-even. The solution to the problem of profit maximization consists in justifying the balance between supply and demand, as well as in finding sales prices that correspond to the maximum extent with the demand of buyers and the interests of the enterprise in obtaining the maximum possible profit.

The range of issues of substantiating management decisions that can be solved using the direct costing system and marginal analysis also includes problems of substantiating a number of management decisions, among which we can highlight:

-justification for accepting an order at prices below market prices;

-justification for making a decision to reduce prices when increasing sales volumes;

-solving the problem of “producing or buying parts, semi-finished products”;

-choice of capital investment option;

-determination of the minimum order quantity.

Carrying out calculations using the marginal analysis method requires compliance with a number of conditions:

-the need to divide costs into two parts - variable and fixed;

-variable costs change in proportion to the volume of production (sales) of products;

-fixed costs do not change within the relevant (significant) volume of production (sales) of products, i.e. in the range of business activity of the enterprise, which is established based on the production capacity of the enterprise and the demand for products.

The break-even model is based on a number of initial assumptions:

-the behavior of costs and revenues can be described by a linear function of one variable - output volume;

-variable costs and prices remain unchanged throughout the entire planning period;

-the product structure does not change during the planned period;

-the behavior of fixed and variable costs can be accurately measured;

-At the end of the analyzed period, the enterprise has no inventories of finished products (or they are insignificant), i.e. sales volume corresponds to production volume.

It should be noted that in specific situations, the manifestation of the mechanism of industrial leverage has a number of features that must be taken into account in the process of its use. These features are as follows:

The positive impact of production leverage begins to appear only after the enterprise has passed the break-even point of its activities.

In order for the positive effect of production leverage to begin to manifest itself, the company must initially generate a sufficient amount of marginal income to cover its fixed costs. This is due to the fact that the company is obliged to reimburse its fixed costs regardless of the specific sales volume, therefore, the higher the amount of fixed costs, the later, other things being equal, it will reach the break-even point of its activities. In this regard, until the enterprise has achieved break-even for its activities, a high level of fixed costs will be an additional “burden” on the way to achieving the break-even point.

2.There is an inverse relationship between production leverage and enterprise profit. The higher the profit of the enterprise, the lower the effect of production leverage and vice versa. This allows us to conclude that production leverage is a tool that equalizes the ratio of the level of profitability and the level of risk in the process of carrying out production activities.

3.As sales continue to increase and move away from the break-even point, the effect of production leverage begins to decline. Each subsequent percentage increase in sales volume will lead to an ever-increasing rate of increase in the amount of profit.

.The mechanism of production leverage also has the opposite direction - with any decrease in sales volume, the profit margin of the enterprise will decrease to an even greater extent.

.The effect of production leverage appears only in the short term. This is determined by the fact that the enterprise’s fixed costs remain unchanged only for a short period of time. As soon as another jump in the amount of fixed costs occurs in the process of increasing sales volume, the company needs to overcome the new break-even point or adapt its production activities to it. In other words, after such a jump, the effect of production leverage manifests itself in new economic conditions in a new way.

Understanding the mechanism of manifestation of production leverage allows us to purposefully manage the ratio of fixed and variable costs in order to increase the efficiency of production and economic activities under various trends in the commodity market conditions and the stage of the enterprise’s life cycle.

In case of unfavorable conditions on the product market, which determines a possible decrease in sales volume, as well as in the early stages of the enterprise’s life cycle, when it has not yet overcome the break-even point, it is necessary to take measures to reduce the enterprise’s fixed costs. And vice versa, with favorable conditions on the commodity market and the presence of a certain margin of safety, the requirements for implementing the fixed cost savings regime can be significantly weakened. During such periods, an enterprise can significantly expand the volume of real investments by reconstructing and modernizing fixed production assets.

When managing fixed costs, it should be borne in mind that their high level is largely determined by industry characteristics of activity, which determine different levels of capital intensity of manufactured products, differentiation of the level of mechanization and automation of labor. In addition, it should be noted that fixed costs are less amenable to rapid change, so enterprises with high production leverage lose flexibility in managing their costs.

When managing variable costs, the main guideline should be to ensure constant savings, since there is a direct relationship between the amount of these costs and the volume of production and sales. Providing these savings before the enterprise overcomes the break-even point leads to an increase in marginal income, which allows it to quickly overcome this point. After overcoming the break-even point, the amount of savings in variable costs will provide a direct increase in the profit of the enterprise. The main reserves for saving variable costs include: reducing the number of workers in main and auxiliary production by ensuring an increase in their labor productivity; reducing the size of stocks of raw materials, supplies and finished products during periods of unfavorable commodity market conditions; ensuring favorable terms for the enterprise for the supply of raw materials and materials, and others.

Thus, the use of the mechanism of production leverage, targeted management of fixed and variable costs, prompt changes in their ratio under changing business conditions will increase the profit-generating potential of the enterprise.

Conclusion

In the first chapter of the course work, the essence of the critical sales volume, the margin of financial strength of the enterprise, and production leverage was studied.

The critical sales volume is the minimum sales revenue required by an enterprise, which allows it to ensure break-even sales in unfavorable conditions of demand for its products (works, services).

The break-even point is the volume of sales at which the income received provides compensation for all costs and expenses, but does not provide the opportunity to make a profit, in other words, this is the lower limit of the volume of output at which profit is zero. Price determination in this method is based on the calculation of fixed and variable costs.

The margin of financial strength is the amount by which a company can afford to reduce revenue without leaving the profit zone.

If an increase in the enterprise's reserves is detected in the reporting period, one can draw a conclusion about its impact on the financial result and the level of financial stability. Therefore, in order to reliably measure the amount of the financial safety margin, it is necessary to adjust the sales revenue indicator by the amount of the increase in the enterprise's inventory for the reporting period. The margin of financial strength, calculated and adjusted, is an important comprehensive indicator of the financial stability of the enterprise, which must be used when forecasting and ensuring the comprehensive financial stability of the enterprise.

Production leverage is an indicator that helps managers choose the optimal enterprise strategy for managing costs and profits. Understanding the mechanism of manifestation of production leverage allows us to purposefully manage the ratio of fixed and variable costs in order to increase the efficiency of production and economic activities under various trends in the commodity market conditions and the stage of the enterprise’s life cycle.

The amount of production leverage may change under the influence of: price and sales volume; variable and fixed costs and combinations of any of these factors.

A necessary condition for using the production leverage mechanism is the use of the marginal method, based on dividing the enterprise's costs into fixed and variable.

The classification of costs into fixed and variable and their distribution by type of product makes it possible to analyze the break-even of both individual products and the entire range of products manufactured by the enterprise. Based on economic analysis, management decisions are ultimately developed aimed at increasing the profit of the enterprise. Along with these requirements, economic analysis should be more fully used to determine the contribution of individual types of products to profit, contribution margin and fixed cost coverage. To compare and evaluate the contribution of individual products to the recovery of fixed costs, the contribution coefficient to cover fixed costs and the contribution coefficient to profit should be calculated.

The greater the difference between the actual production volume and the critical one, the higher the “financial strength” of the enterprise, and, consequently, its financial stability. A company with a small share of fixed costs can produce relatively less products than a company with a higher share of fixed costs in order to ensure break-even and safety of its production. With a sales volume of double-glazed windows of 145 pcs. and revenue, respectively, 1044 thousand rubles, the company Price-Universal LLC reimburses all expenses with the income received, while the profit of the enterprise is zero, and the margin of financial strength for the double-glazed window will be 715 thousand rubles.

profitability leverage breakeven sales

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To determine the break-even point of production consider the relationship between revenue, profit, variables mi and fixed costs.

Total production costs, divided by fixed costs(POSTZ) and variable costs (PERZ) can be represented as equality:

Or (3.6.)

Where p1 - ​​variable costs per unit of product; K - production volume.

Sales revenue is determined by the ratio:

, (3.7.)

where C is the unit price of the product.

Then the relationship between profit, revenue, constant and re fixed costs are characterized by the ratio:

Or (3.8.)

Let's estimate the impact of revenue and costs on profit based on the assumption that the enterprise's profit should be non-negative, i.e. PRP > O

If the enterprise’s profit is zero: PRP = O, then in this case the enterprise’s revenue is equal to costs, i.e. before the enterprise has zero profit: PRB = O, B = ZAT.

The main indicators characterizing this situation:

1. Specific marginal profit

2 . Critical production volume

3. Production safety margin, production strength range, production strength level

4. Marginal profit

5. Critical revenue volume

6. Margin of financial strength

7. Range of financial strength

8. Level of financial strength

Specific marginal profit.

The difference between the unit price and the variables for expenses for its production is called marginal profit per unit of production or specific marginal profit

(3.9.)

____________________________________________________________________________________________

Critical production volume.

The volume of production and sales at which the enterprise has zero profit, is called critical - Kkr (break-even point).

The value of the critical production volume (Kkr) is determined by is determined from the relation:

(3.10.)

As the critical volume increases, the profit before acceptance. The main factors influencing the value of crit commercial volume of production are:

An increase in fixed costs, leading to an increase critical volume of production, accordingly, with a decrease in fixed costs, the critical volume of production decreases;

Increase in variable costs per unit of production when constant price, leading to an increase in the critical volume of production, respectively, with a decrease in variable costs the critical volume of production decreases per unit of production stva;

increase in selling price with constant variables costs per unit of production, leading to a decrease in critical cical production volume.

It is obvious that the critical production volume is decreasing in the event that the growth rate of fixed costs is less than the rate growth of marginal income per unit of production.

_____________________________________________________________________________________________

_________________________________________________________________________________________

Production safety margin.

The difference between the actual (Kfact) and critical volume production (Kkr) characterizes the safety margin of production in in kind (VN):

(3.11.)

If Kfact > Kcr, then the enterprise makes a profit from the production and sale of products, if the value of the ZPR is negative, then the enterprise from the production and sale of these products has losses.

When Kfact > Kcr you can set the production range strength - DPP and level of industrial safety U (ZPP):

(3.12.)

(3.13.)

The higher the value of Prb, the more efficient production and sales of this product.

_______________________________________________________________________________________________

Marginal profit.

Difference between sales revenue and variable costs called contribution margin (MPR). This is the part of the gain ki from the sale of products that remain to cover the cost real costs and profit generation:

(3.14.)

____________________________________________________________________________________________

Critical revenue volume.

Critical revenue volume (or profitability threshold) (Vkr),

P Qk - Zvar Qk = Zconst; Qk (P - Zvar) = Zconst;

Marginal income for the entire output is determined as the difference between revenue and the amount of variable costs.

2. Calculation of the critical volume of sales revenue. We multiply the previous equation by the price and get the necessary formula:

3. Calculation of the critical level of fixed costs. The initial revenue formula is used for calculation:

N = Zconst + Zvar
From here we have:

Zconst = N - Zvar = P Qk - Zvar Qk = Qk(P - Zvar) = Qk d
From the last formula, you can determine the amount of fixed costs if the level of marginal income is specified as a percentage of the price of a tourism product or as a percentage of sales volume (revenue). Then the formula for calculations will look like:

If the relationship between the amount of marginal income and revenue is known (or between the amount of marginal income per unit of tourism product and the price of the tourism product), then the minimum price of the product can be determined by the formula

6. Calculation of planned volume for a given amount of planned (expected) profit. If fixed costs, unit price, variable costs per unit of product, as well as the amount of estimated (desired) profit are known, then sales volume is determined by the following formula:

This formula follows directly from the definition of marginal income as the sum of fixed costs and planned profit.

7. Calculation of sales volume that gives the same profit for different types of tourism products. The algebraic solution to the problem is contained in the following formula (analysis of two options):

(P1 - Zvar1) Qk - C1 = (P2 - Z var2) Qk - C2
from which follows the calculation of the sales volume:

Where C1, C2 are fixed costs for various options;
d1, d2 - marginal income per unit of tourism product for various options.

Using direct costing, we will conduct a break-even analysis using a specific example.

Example. One enterprising student decided to make money by selling souvenirs to tourists - nesting dolls. After making inquiries, she learned that she would need to pay 10 rubles for a seller’s license. and that the rent for a place for trading will be 140 rubles. For one nesting doll with the right to return unsold goods, a student must pay 3 rubles. The student decided that the appropriate price for the nesting doll would be 8 rubles.

Naturally, she was concerned about whether this enterprise would be profitable. As a first step, she decided to calculate the number of nesting dolls that needed to be sold in order not to incur losses:

Revenue from sales (sales) = Variable expenses + Fixed expenses + Profit (loss)

Since at the break-even point profit (loss) is zero, then

Revenue from sales (sales) = Variable expenses + Fixed expenses

If we denote the number of nesting dolls that must be sold in order not to incur losses by X, we get

8 X = 3 X + 150 RUR where Sales = Selling price (8 rubles) X; Variable costs = Variable costs per unit of goods (3 rubles) X;

From the equation we get 5 X = 150 rubles, hence X = 30 pcs.

Thus, in order not to incur losses, you need to sell 30 nesting dolls. The required number of nesting dolls sold is important information, since the student needs to estimate the likelihood of such a quantity of demand that would make the sale profitable.

Suppose a student decides that she needs a profit from sales in the amount of 400 rubles. How many nesting dolls do you need to sell to achieve this goal?

Revenue from sales (sales) = Variable expenses + Fixed expenses + Profit

8 X = 3 X + 150 rub. + 400 rub.;

X (8 - 3) = 550 rub.

Hence X = 110 pieces. So, selling 110 nesting dolls will give a profit of 400 rubles.

This approach can be used at enterprises selling one type of product (work, service). In practice, an enterprise sells many products, and analysis of break-even sales in physical terms becomes useless, so sales volume is calculated in monetary terms.

Suppose a student decided to sell, in addition to nesting dolls, products from Gzhel, Khokhloma and Vologda lace. If we denote sales revenue in rubles at the break-even point by Y, we get:

Y= Share of variable expenses Y+ Fixed expenses;

Y = 0.375 Y + 150 rub.
The share of variable expenses (D) is determined from the proportion:

Solving the equation, we get 0.625 U = 150 rubles. Hence Y = 240 rubles, i.e. the sales volume at the break-even point is 240 rubles.

In Fig. 3.2 reflects the results obtained above. The different behavior of variable (production) and fixed (periodic) costs is clearly visible.

The lower the level of fixed costs, the less sales volume is needed to cover them, and the lower the break-even point.

At the break-even point:

Sales 240 rub. (100%)
Fixed costs 150 rub. (62%)
Variable costs 90 rub. (38%)
Profit 0

Another break-even analysis technique that can provide additional insight into the relationship between sales volume, costs and profit is the marginal income method.

Marginal income is what remains of the net selling price after variable costs have been subtracted. From the marginal income, fixed expenses must first be reimbursed, and the remainder will be profit from sales.

The selling price of one nesting doll is 8 rubles.
Variable costs for one nesting doll are 3 rubles.
Marginal income 5 rubles.

Since each unit of production (matryoshka) covers fixed costs and then brings a profit from sales in the amount of 5 rubles, the break-even point in units of production will be equal to:

Thus, after the sale of 30 nesting dolls, fixed (periodic) expenses will be reimbursed and each additional unit of production sold will bring a marginal profit equal to 5 rubles.

Let us recall another definition of marginal income: marginal profit- This is additional income from the sale of one additional unit of product. When expressing the break-even point in valuation, the formula does not use the marginal profit, but the marginal profit ratio.

Marginal profit ratio- percentage calculated as follows:

The break-even point in value terms is calculated as follows:

Note that break-even analysis cannot be effectively used in cases of sharp and frequent fluctuations in sales prices and production costs.

From a simple example, let's move on to more general conclusions that can be drawn from break-even analysis.

Leverage margin analysis. Fixed (recurring) expenses are closely related to the “leverage” indicator. The term "leverage" comes from the word "lever", meaning "lever".

Archimedes said: “Give me a point of support, and I will change the world.” They are told about the possibilities of leverage in physics. In fact, in both physics and finance, the possibilities of leverage are not so great, although they are significant.

Fixed expenses of an operating enterprise are a basic element of the concept of operating leverage. As long as the profit received by the enterprise is insufficient to cover fixed costs, it suffers losses. Once production volume has been reached to cover fixed costs, any increase in production volume ensures an increase in profits.

Let's consider the effect of operational (production) leverage using an example.

Example. The company has the following cost structure: fixed costs - 100 thousand rubles; share of variable costs - 60%

Table data 3.2 shows profit (loss) at increasing sales levels and relative changes in sales volume and profitability.
Table 3.2 Dependence of profit on changes in sales volume

According to the given data, starting from the break-even point, as a result of the first increase in sales by 20%, there is a significant increase in profit, since the increase starts from zero. The next 20% increase in sales volume increases profits by 120% over the previous level, but further growth in sales volume increases profits by only 65% ​​compared to the previous level.

The leverage effect decreases as sales increase above the breakeven level because the base against which the increase in profits is compared gradually becomes larger. Leverage, of course, works in both directions. Note that as a result of a drop in sales volume from 200 to 100 thousand rubles, i.e. by 50%, the company suffers losses of three times the amount.

An important conclusion to draw from this example is that businesses operating close to the break-even point will have a relatively larger proportion of changes in profit or loss for a given change in volume. Above the break-even point, this variability will, of course, be desirable; below it, it can lead to unfavorable results that are significantly worse than those reflecting changes in sales volume alone.

Operating leverage formula:

So, sales growth changes operating leverage, which decreases as we move away from the break-even point because fixed costs become relatively smaller compared to sales and variable costs. Operating leverage shows the degree of influence of efforts to increase sales on the growth of profits from sales of products (works, services). If the firm's operating leverage is large, then even a small increase in sales volume will lead to a significant increase in profits, but at the same time, a small decrease in sales volume can negate profits.

Thus, although a business may make fixed costs to increase capacity or reduce variable costs, it often makes sense to reduce fixed costs to reduce the risk associated with a high break-even point.

Financing leverage (interest - charges leverage). This type of leverage occurs when a firm borrows at interest.

Financing leverage formula:

Combined leverage(combined leverage). To measure the combined impact of both types of leverage, an estimate using the combined leverage formula is used:

Direct costing is of great importance for managing and analyzing the activities of an enterprise, in particular for making decisions on assortment policy, as well as on closing or declaring bankruptcy in the event of unprofitable activities.

Let's look at an example of how the use of direct costing can contribute to making decisions about the range of tourism products sold.

According to the table. 3.3, tourism product II has low profitability (profitability). However, before abandoning the formation and sale of this tourism product, it is necessary to conduct the following analysis. To make a profit, it is important that the amount of revenue exceeds the amount of variable costs.

To do this, it is advisable to use indicators such as coverage amount and coverage ratio.
Table 3.3 Indicators of the financial and economic activities of the company

* The average coverage, or marginal profit, is the additional income from the sale of one additional unit of the tourism product.
** The distribution of fixed costs by type of tourism product is made in proportion to variable costs.

Coverage amount is the difference between sales revenue and the total amount of variable costs. Calculating the amount of coverage allows you to determine how much money a tourist organization earns by creating and selling a tourism product in order to recoup fixed costs and make a profit.

Coverage factor is called the share of the amount of coverage in sales revenue or the share of the average amount of coverage in the price of a tourism product.

The coverage ratio is determined as follows:

In order to determine at what volume of sales the gross costs of the enterprise will be repaid, it is necessary to calculate the break-even point, which is understood as such sales revenue or such volume of sales of tourism products that ensure coverage of all costs and zero profit.

Sales revenue corresponding to the break-even point is called threshold revenue, and the volume of sales (sales) at the break-even point is threshold sales volume(sales).

Let's use the break-even point formula:

So, the break-even point in value terms is calculated as the ratio of fixed costs to the coverage ratio, and in physical terms - as the ratio of fixed costs to the average coverage rate.

If a tourist organization receives sales revenue greater than the threshold revenue (124.5 thousand rubles - 78.6 thousand rubles), then it operates profitably. To assess how much actual revenue exceeds break-even revenue, it is necessary to calculate the margin of safety (percentage deviation of actual revenue from the threshold) using the following formula:

To determine the impact of changes in sales revenue on changes in profit, the operating leverage indicator (production leverage) is calculated using the formula:

The higher the production leverage effect, the riskier the firm's position in terms of profit volatility. Since the company has in its assortment tourism product II with low profitability at full cost, let’s see how the organization’s profit will change if we abandon this type of tourism product. In case of refusal to form and sell tourism product II, sales revenue will be reduced by the amount of revenue from the sale of this product: 124.5 thousand rubles. -- 72 thousand rubles. = 52.5 thousand rubles.

At the same time, the gross costs of the enterprise will also be reduced by the amount of variable costs necessary for the formation of tourism product P, by the amount of 54 thousand rubles. (114 thousand rubles - 60 thousand rubles). Since fixed costs do not depend on the volume of sales, refusal to form tourism product II will not affect their value. So, in case of refusal to formulate tourism product II, tourism organization will have losses: -1.5 thousand rubles. (52.5 thousand rubles - 54 thousand rubles). And the total losses will be equal to 2.3 thousand rubles. (0.8 thousand rubles + 1.5 thousand rubles), where 0.8 thousand rubles. -direct lost profit.

Thus, having information only about the full cost, you can make the wrong decision and lose profit. Using direct costing allows you to avoid such mistakes and make reasonable management decisions.

According to the table. 3.3, the average coverage for tourism product III is even lower than for tourism product P. Therefore, with a reduction in demand in the tourism market, it is more profitable for a company to abandon the formation of tourism product III than from other types of tourism products.

These are the main principles of costs and profit optimization in the direct costing system.

There are no ideal systems or methods. Each of them has its own advantages and disadvantages. The main task is to understand the features of each method in order to neutralize the negative aspects and make the most of their positive advantages.

Note that in most Western enterprises the direct costing system is used in parallel, taking into account the full cost.

Modern domestic companies that prefer accounting based on economic indicators find in the process of work that costing based on direct costs seems to be a better method than costing with full distribution of costs. Dividing costs into fixed and variable allows you to control variable cost items based on their relationship with each unit of production, and fixed cost items based on taking into account their actual total value for the reporting period. Costing based on variable costs allows you to control and establish the level of profitability and calculate such a cost, which in today's conditions of the enterprise's operation in the market could provide it with a certain profit. Combining methods of cost calculation, accounting of production results and their analysis allows you to make reasonable management decisions in a competitive environment.

So, based on the completeness of including costs in the cost, there are two ways to group and include costs in the cost of services. Let's look at them with an example.

Example. The tour operator has the following economic performance indicators:

The cost of one tour package for the reporting period is 454 thousand rubles/1000 pcs. =454 RUR/pcs.

The cost of sales of services for the reporting period, calculated in the traditional way, will be: 514 rubles/piece. x 900 pcs. = = 462.6 thousand rubles.

Direct costing method: 454 RUR/piece - x 900 pieces. = 408.6 thousand rubles.

The cost of tourist and excursion packages, which will be allocated to the balance of annual production at the end of the reporting period:

· method of calculating the full cost: 514 thousand rubles - 462.6 thousand rubles. = 51.4 thousand rubles;

· using the "direct costing" method: 454 thousand rubles. - 408.6 thousand rubles. = = 45.4 thousand rubles.

For tax purposes, we will calculate advertising expenses in excess of the norm, which are not included in the cost of tourist excursion packages. Please note that the cost of the generated tourism product I is exempt from VAT. 50 thousand rubles. - 810 thousand rubles. x 6% = 50 thousand rubles. - 48.6 thousand rubles. = = 1.4 thousand rubles.

Profit from sales, calculated in the traditional way, will be: 810 thousand rubles. - 462.6 thousand rubles. - 70 thousand rubles. = = 277.4 thousand rubles.

Direct costing method: 810 thousand rubles. - 408.6 thousand rubles. - - 60 thousand rubles. - 70 thousand rubles. = 271.4 thousand rubles.

Gross profit serves as the basis for the formation of an object of taxation by income tax, this reveals the tax aspect of the concept of “cost”.

In our example, gross profit consists only of profit from the sale of services.

When determining income tax, the taxable profit base is first adjusted to the amount of advertising expenses in excess of the norm:

1. 277.4 thousand rubles. + 1.4 thousand rub. = 278.8 thousand rubles;

2. 278.8 thousand rubles. x 0.35% = 97.58 thousand rubles.

When calculating using the “direct costing” method, the income tax will be:

1. 271.4 thousand rubles. + 1.4 thousand rub. = 272.8 thousand rubles;

2. 272.8 thousand rubles. x 0.35% = 95.48 thousand rubles.

The company's profit tax savings when using the direct costing method will be: 97.58 thousand rubles. - 95.48 thousand rubles. = = 2.1 thousand rubles.

Distribution of indirect costs

Tax legislation puts forward the requirement for separate accounting of production and sales costs by type of activity and type of product (work, service). This requirement is contained in the Instruction of the State Tax Service of the Russian Federation dated August 10, 1995 No. 37 “On the procedure for calculating and paying the income tax of enterprises and organizations to the budget” and in the Instruction of the State Tax Service of the Russian Federation dated October 11, 1995 No. 39 “On the procedure for calculating and paying value added tax budget.

The need for separate cost accounting is determined by a number of reasons:

· different income tax rates apply for different types of activities - the income tax rate for tour operator activities is 30%, the income tax rate for intermediary operations, i.e., for travel agency activities, is 38%;

· to confirm the right to a benefit for value added tax and income tax, Instruction of the State Tax Service of the Russian Federation No. 37 establishes that if an enterprise has several types of activities for which different income tax rates are established, for example, a tourist organization sells its own vouchers (tour operator activities ) and sells other people's tourist vouchers under intermediary agreements (travel agency activities), then income tax is calculated on the profit from each type of activity at the appropriate rates, regardless of the results of the activity as a whole.

An accountant of an enterprise carrying out several types of activities, the profits from which are taxed at different income tax rates, must ensure:

· separate accounting of sales revenue for different types of activities;

· separate accounting of direct costs;

· distribution of indirect (general production and general economic) expenses for various types of activities.

Example. The region has the following income tax rates, %:

Revenue from sales of products for core activities for the reporting period including VAT - 300 thousand rubles, including VAT - 20 thousand rubles. Direct costs for core activities amounted to 160 thousand rubles. In addition, in the reporting period, the tourism organization sold other people's tourist vouchers under a commission agreement without participating in the calculations, while the commission received by the enterprise amounted to 48 thousand rubles, including VAT - 8 thousand rubles. Direct costs of conducting an intermediary operation are 5 thousand rubles. General business and production expenses for the reporting period for the enterprise as a whole amounted to 29 thousand rubles.

1. We determine the share of indirect (general and general production) expenses related to the main activity:

2. We determine the share of indirect (general business and general production) expenses related to intermediary activities:

3. Financial result for core activities:

300 thousand rubles. - 20 thousand rubles. - 160 thousand rubles. - 25 thousand rubles. = 95 thousand rubles.

4. Financial result from intermediary operations:

48 thousand rubles. - 8 thousand rubles. - 5 thousand rubles. - 4 thousand rubles. = 31 thousand rubles.

5. Balance sheet profit for the enterprise as a whole:

95 thousand rubles. + 31 thousand rub. = 126 thousand rubles.

6. We determine the amount of income tax for the main activity in the absence of tax benefits:

95 thousand rubles. x 30% = 28.5 thousand rubles.

7. We determine the amount of tax on profits from intermediary activities in the absence of tax benefits:

31 thousand rubles. x 38% = 11.78 thousand rubles.

The following entry is made in accounting:

Many problems arise for accountants when deciding on the use of income tax benefits in an enterprise that carries out several types of activities.

Instruction of the State Tax Service of the Russian Federation dated August 10, 1995 No. 37 on this matter contains the following instruction: “If an enterprise has types of activities, the profit from which is taxed at different rates, then income tax benefits are distributed in proportion to the revenue received from each type of activity in the total amount of revenue from sales of products (works, services)."

So, in accounting, costs should be divided into two groups:

1. Related to taxable activities (intermediary and additional services). Please note that VAT amounts paid on goods (work, services) used in the manufacture of products and provision of services that are not exempt from VAT are subject to offset in the generally established manner.

2. Related to non-taxable activities (formation of tourism products and resale). In accordance with clause 20 and clause 21 of the Instruction of the State Tax Service of the Russian Federation dated October 11, 1995 No. 39, VAT paid on goods, work, services used in the manufacture of products and carrying out operations exempt from tax in accordance with subparagraphs "e" - "w" clause 1 art. 5 of the Law of the Russian Federation "On Value Added Tax" refers to production and distribution costs.

If an organization carries out several types of activities, then, if it is practically impossible to ensure separate accounting of “input” VAT on taxable and non-taxable turnover, the question arises of choosing a base for the distribution of VAT amounts recorded in account 19 “VAT on acquired values” to the amounts included in the cost, and amounts included in the reduction of payments to the budget.

Currently, no regulatory document defines the basis for dividing the opening balance of account 19. Consequently, this basis can be declared as an element of accounting policy.

The opinion of the Ministry of Finance of Russia in choosing the basis for the distribution of the opening balance of account 19 is expressed in letter dated October 9, 1997 No. 04-07-07. The letter is a response to a request from NAUFOR (National Association of Stock Market Participants); it has not been registered or published by the Ministry of Justice and has the status of official correspondence. In accordance with this letter, VAT should be taken into account in an amount corresponding to the share of sales turnover received from taxable transactions in the total amount of sales turnover for the reporting period. In this case, sales turnover is considered to be the entire amount of revenue received from the sale of products, work performed, services provided, without including VAT.

An element of the accounting policy is the distribution base and the procedure for writing off VAT amounts on acquired assets if tourism organizations carry out several types of activities with different tax regimes. In addition, an element of the accounting policy is the procedure for accounting and refunding VAT on acquired fixed assets in the presence of types of activities subject to and not subject to value added tax.

According to clause 47 of the Instruction of the State Tax Service of the Russian Federation dated October 11, 1995 No. 39, the amounts of VAT paid on the acquisition of fixed assets and intangible assets are fully deducted from the tax amounts subject to contribution to the budget at the time of registration of fixed assets and intangible assets . Fixed assets and intangible assets used in the production of goods (work, services) exempt from VAT in accordance with subparagraphs “c”, “w”, “s”, “i” of paragraph 1 of Art. 5 of the Law of the Russian Federation “On Value Added Tax” are reflected in accounting at the cost of acquisition, including the amount of tax paid.

The right to a refund (offset) of VAT paid on the acquisition of fixed assets, in the presence of types of activities subject to and not subject to VAT, is possible provided that the fixed assets, and therefore the costs of their acquisition, used in different types of activities are completely separated.

If it is objectively impossible to ensure separate accounting of costs for fixed assets or their distribution, acquired fixed assets for production purposes can be reflected in accounting at the cost of acquisition, including the amount of VAT paid, with subsequent write-off in the prescribed manner through the amount of accrued depreciation.

Example. Let's consider the distribution of VAT on acquired assets in proportion to income received from activities subject to and not subject to VAT. Let’s assume that for the reporting quarter, the amount of VAT on paid and rendered services amounted to 80 thousand rubles, on paid and registered fixed assets - 110 thousand rubles.

When distributing costs according to paid VAT amounts, three options are possible:

1. During the reporting period, only their own tour packages were sold (the activity is exempt from VAT), then the following entry is made in the accounting records:

2. During the reporting period, they sold only other people’s tourist vouchers under a contract of agency or provided additional services (activities are subject to VAT). In this case, the following entries are made in accounting:

3. During the reporting period, we sold both our own and other people’s tour packages, and the non-taxable sales turnover amounted to 800 thousand rubles, and the taxable sales turnover without VAT was 200 thousand rubles. The total sales turnover amounted to 1000 thousand rubles.

We will distribute the VAT in proportion to the volume of sales, i.e. in a ratio of 8:2.

The total amount of VAT on purchased assets is: 80 thousand rubles. + 110 thousand rub. = 190 thousand rubles. (or 100%). Then X = 152 thousand rubles. (80%); Y= 38 thousand rubles. (20 %).

The following entries are made in accounting:

Maintaining separate cost accounting for each type of activity means: firstly, documenting business transactions, ensuring their attribution to one or another type of activity; secondly, separate reflection of business transactions in accounting registers.

Compliance with the specified accounting rules presupposes:

· description in primary documents of the content of business transactions, which makes it possible to clearly classify such an operation as a specific type of activity;

· maintenance of separate synthetic accounting registers for each type of activity to summarize primary accounting documents;

· keeping records of income and expenses for each type of activity in separate subaccounts of the corresponding balance sheet accounts.

The procedure for maintaining separate accounting of costs, including overhead costs, is determined by order of the Minister of Finance of the Russian Federation dated July 28, 1994 No. 100 “On approval of the Accounting Regulations.” In multi-profile organizations where there are several types of activities (tour operators and travel agents), indirect (general and general production) costs are first subject to distribution between the objects of the types of activities according to one of the options:

1. in proportion to the sum of all direct costs by type of activity;

2. in proportion to the cost of products at sales prices, i.e. in proportion to the amount of sales proceeds received from each type of activity in the total amount of sales proceeds, excluding VAT.

According to clause 2.10 of the State Tax Service instruction dated August 10, 1995 No. 37 “On the procedure for calculating and paying income tax for enterprises and organizations to the budget,” the basis for the distribution of indirect costs should be revenue from the sale of products (works, services) received from different types of activities .

The company's accounting policy must highlight:

· types of activities for which separate cost accounting is maintained;

· the basis for the distribution of indirect (general and general production) expenses by type of activity.

Distribution of indirect costs by costing objects. Next, indirect costs are distributed among the objects of calculation, i.e., for individual types of products (works, services) according to one of the following options:

1. in proportion to one type of direct costs, for example in proportion to the wage fund (most widespread in industry);

2. proportional to the total amount of direct costs (more often than other options used in tourism organizations). On average, the level of overhead costs for a tour operator ranges from 5 to 20% of the total amount of all direct costs;

3. in proportion to the standard values ​​of indirect costs. The standard value of indirect costs is taken from the analysis of actual indirect costs for the previous reporting period, for example, for 3 months, and, provided that the volume of sales of tourism services is uniform, by month or by season;

4. using the direct counting method. Let's assume that the indirect costs of the tour operator for the reporting period amounted to 30 thousand rubles. If during the reporting period it is planned to form and send only one group, then the entire amount (30 thousand rubles) when calculating this tour will be reflected in the calculation item, which is called “Overhead (indirect) costs of the tour operator”;

5. in a differentiated way using percentage.

The correct choice of the base for the distribution of indirect costs has a significant impact on determining the degree of profitability of certain types of products (works, services), while it must be taken into account that in modern conditions the selling price is set by the market, and taxes are set by the state.

Thus, the process of allocating indirect costs depends on two points:

· forecasting their total value,

· selection of distribution base.

A lot of time and effort can go into allocating overhead costs. However, their actual value rarely coincides with the preliminary estimate of overhead costs, and therefore it almost always turns out that one has to deal with either under-allocated or over-allocated overhead costs, i.e., the amount of overhead costs allocated to tourism products will be less or more than actual overhead costs incurred. And the accountant faces the task of adjusting them quarterly or annually. If it is clear from the accounting accounts that overhead costs were not fully distributed during the year, that is, actual overhead costs exceeded the planned amount, therefore, the standard overhead cost ratio when forecasting was slightly underestimated. Therefore, it is necessary to add a certain amount to the overhead costs of the reporting period and increase the standard overhead ratio.

Functional accounting

Functional accounting is a new method for national accounting for distributing indirect costs among costing objects.

Functional accounting is necessary for tourism organizations for two reasons:

1. the degree of heterogeneity (different types) of the tourism product is high, that is, different types of overhead costs are absorbed by different tourism products to varying degrees;

2. the use of volume-dependent distribution bases (cost carriers) to distribute volume-independent indirect costs leads to a distortion of the cost of tourism products; Moreover, the degree of distortion is determined by the share that falls on volume-independent indirect costs as part of the total amount of indirect costs.

The functional accounting system assumes that costs will first of all be tracked in relation to production functions and only then - in relation to the objects of calculation

The fundamental difference between the traditional method of distributing indirect costs among costing objects and functional accounting lies in the number of distribution bases used (cost carriers).

Functional accounting uses a significantly larger number of indirect cost distribution bases than the traditional system. Essentially speaking, in functional accounting, overhead costs are divided into groups, and each group is characterized by its own cost carrier, different from the others. Then the group rate of indirect costs is determined for each grouping and for each cost carrier. As a result, thanks to this method, accounting accuracy increases.

The functional accounting system consists of two stages. At the first stage, indirect costs are distributed among groups of homogeneous costs. Under grouping of homogeneous costs is understood as a set of indirect costs, changes in indicators of which are attributed to one cost carrier (one distribution base).

Then it is determined group rate- indicator of costs per unit of cost carrier (per unit of distribution base value) for each grouping. During the second stage, indirect costs for each grouping, attributable to the corresponding costing object, are determined by multiplying the group rate by the value of the distribution base of indirect costs for the costing objects for the selected groupings.

Let's consider the distribution of indirect costs using a conditional example.

Example. The main services in the sanatorium are treatment (L), food (P) and accommodation (F). Let's calculate the cost of the services provided using the traditional method and using functional accounting (Table 3.4).
Table 3.4 Calculation of the cost of services provided, rub.

* We take the sales revenue indicator as the basis for the distribution of indirect costs among the objects of calculation.
** We select distribution bases (cost carriers) for each group. For this example, the wage fund indicator (WF) was taken as the distribution base (cost carrier) for management costs due to the dependence of costs on the number and qualifications of personnel. The cost of washing clothes depends on the weight of the laundry, so the distribution base is taken as a natural indicator - the weight of the laundry.

The example shows that without using functional accounting, you can make a mistake in determining cost. Thus, with traditional accounting, indirect costs of treatment turned out to be insufficiently allocated (half as much), while the cost of living was overestimated (twice) due to the redundancy of attribution of general business costs.

Thanks to the use of functional accounting, the accuracy of determining cost increases, this is explained by the fact that a significant share of indirect costs does not depend on the volume of sales and is not determined by it.

Thus, the following conclusions can be drawn:

· the use of a single distribution base (cost carrier) seems incorrect;

· the use of exclusively volume-dependent distribution bases leads to the fact that the production of one type of product (work, service) subsidizes the production of another;

· functional accounting indicators adequately reflect the degree of cost absorption and are the most accurate.

In market conditions, the availability of accurate information about costs is the most important prerequisite for the competent management of a tourism organization. The use of functional accounting allows us to improve the mechanism for making management decisions.

COSTS AND PRICING

(Q cr). Assess the situation at the company and suggest ways to change it. Display the critical production volume (break-even point graph) on the coordinate field.

Given:

Product production volume - 14,000 units.

For all options:

Worker labor productivity (PT slave) - 500 units. in year;

The share of “managers” is 15% in the total number of industrial production personnel (PPP) - 1 person;

The average monthly salary of a worker (average monthly salary for a worker) is 30 thousand rubles;

The salary of “managers” is determined independently - 20 thousand rubles;

The share of labor costs for all personnel with insurance premiums in the total costs of production is 25%.;

Profit rate - 14% (average price (P avg) is 1.14 times more than the cost per unit of production (C unit));

The share of variable costs (Z per) in the total costs is 53%.

Solution:

The critical (break-even) volume in physical terms is determined by the formula:

Qcr = Zpost / (Tsr - Zud.per.) = 27,472 / (4,759.5 - 2,212.8) = 10,790 units.

Ztot = (11,080 + 3532.8) ? 4 (25%) = 58,451,000 rubles.

Tsr = 58,451,000.2 / 14,000 + 14% = 4,759.5 rubles.

Zpost = 58451.2? 0.47 =27,472,000 rubles.

Zper = 58451.2 ? 0.53 = 30,979,000 rubles.

Itchy per. = 30979.1 / 14 = 2,212.8 rub.

where Z post - fixed costs; P - unit price; Itchy per. - variable costs per unit of production.

Sales volume in monetary terms corresponding to the break-even point is determined by multiplying Q kr per price (P).

In this problem, to determine the total costs of production (3 total), it is necessary to know the amount of labor costs for all personnel with insurance premiums (the sum of the annual wage fund (WF) and insurance premiums (IC)), which can be determined based on What

FOT = FOTrab + FOTau = 10,080 + 960 = 11,040 thousand rubles.

where payroll slave, payroll AU - wage fund for workers and “managers”, respectively.

Tariffs of insurance contributions for compulsory social insurance (PFR, FSS of the Russian Federation, FFOMS) are applied in accordance with the legislation adopted and in force in the Russian Federation at the time of writing, and will amount to 11,040? 32% = 3532.8 thousand rubles.

wherein:

A) FOTwork = average year. Salary? Chrab = 360 ? 28 = 10,080 thousand rubles.

where avg. year salary slave is the average annual salary of one worker; H slave - number of workers;

B) FOT AU = average year.ZPau? Chow = 240 ? 4 = 960 thousand rubles;

B) Chrab = Q / PTlab = 14,000 / 500 = 28 people.

Where Q- annual production volume; PT slave - annual labor productivity of one worker;

D) Chpp = Chrab + Chau = 28 + 4 = 32 people.

where N PPP is the number of industrial production personnel.

Let's compare the level Qcr = 10790 units. with achieved Qf = 14000 units. we can conclude that the company operates efficiently, because Qf is greater than Qcr, which provides the company with a sufficient level of profit to carry out the development of the enterprise.

The financial safety margin is: the ratio of the difference between the current sales volume and the sales volume at the break-even point to the current sales volume, expressed as a percentage.

ZFP = ((14000 - 10790)/14000)*100% = 22.93%

Let's analyze the results using the popular management model of CVP analysis.

CVP analysis is an enterprise management system that integrates various subsystems and management methods and subordinates them to achieving a single goal. This discipline should have its own subject of study: in our opinion, these are the costs and results of the activities of the subject of market relations. To manage the process of optimizing performance results, CVP analysis must use methods from various disciplines: accounting, analysis, control, strategic and operational planning and management, enterprise economics, economic and mathematical methods, etc.

The CVP analysis model allows you to trace and “play” the dependencies, ratios and dynamics of costs, results and sales volumes. With its help you can answer a number of important questions.

What is the maximum price level for a product when other parameters change? And for us it is equal to 51,355,000 / 10,790 = 4,760 rubles.

What volume of revenue is needed to ensure a given profit? According to our schedule, the profit volume should be no less than 51,355,000 rubles.

Income, Revenue

Costs, thousand rubles

27472.1 Zpost

10790 14000 Q (units).

Figure No. 2 Critical production volume schedule

An enterprise can make a profit by selling products in quantities exceeding the critical break-even point Qcr. Point Qcr is called the critical point, upon passing through which all costs are recouped and the enterprise begins to make a profit.

Profit = income - costs = 66633 - 58451.3 = 8181.7 thousand rubles.

Revenue = Tsr? Q = 4,759.5? 14000 = 66,633,000

With an increase in prices for manufactured products, the minimum production volume, which corresponds to the critical point, decreases, and when the price decreases, on the contrary, it increases.

As fixed costs increase, the minimum production volume corresponding to the break-even point increases.

Maintaining a break-even production volume with an increase in variable costs is possible, all other things being equal, by increasing the minimum production volume.