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Management Accounting: Golden Bakeries LTD - CVP Analysis.
Date Submitted: 09/10/2006 02:58:22
Length: 3 pages (918 words)
Views: 187243
I. Executive Summary Golden Bakeries ltd. has three major product lines: bread rolls, donuts and fudge cakes. Survey from the statement of financial performance as of June end 2004, material and finished goods are almost same for three kinds of products. It means the production and sales keep same in accounting period. Regarding to current sales categories, The biggest marginal contribution ratio is from bread rolls, reached 50.3%. The weighted average marginal contribution ratio is 44.2%, Profit is 14% …
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…variable for Fudge Cakes is not so ideal. Because of its contribution margin is 27%, in order to keep both market share and diversity of product, should keep enough capacities and reach break even by marking up. VIII Bibliography: 1.<Tab/>Carl Warren 2001 Survey of Accounting, South-Western College Publishing, a division of Thomson Learning 2.<Tab/>Robert A, David H, Kenneth M. 2005 Accounting: Test and Cases(11thed), China Machine Press
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