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III. COST ANALYSIS Homework -Factor Analysis 2. Production performance of April is very good. Compared with last month, production volume increased by 200 units up to 1200 units; Unit cost dropped bu $97 down to $899. Total production cost of April is $1,078,800 and it of March is $996,000. Compared with last month, why unit product cost decreased but total production cost increased? For the change of total production cost (+$82,800), how much is due to the decrease in unit product cost? Which factor inside unit product cost contributes the biggest saving? About the question 3> Which factor inside unit product cost contributes the biggest saving? Impact from unit product cost is 116,400, in which Unit cost impact = (unit cost of April -it of March) volume of product in April 91,200=(624700)120021,600=(198216)12003,600=(7780)1200 Material X contributed biggest saving inside unit cost impact we can continually dig out the reason: Cost of X used per product = purchase price of X per kgkgs used to product one product 2. Production performance of April is very good. Compared with last month, production volume increased by 200 units up to 1200 units; Unit cost dropped by $97 down to $899. Total production cost of Aprill is $1,078,800 and it of March is $996,000. Compared with last month, why unit product cost decreased but total production cost increased? For the change of total production cost (+$82,800), how much is due to the decrease in unit product cost? Which factor inside unit product cost contributes the biggest saving? About the question 3) Which factor inside unit product cost contributes the biggest saving? Total cost of X= Unit cost of X per product * product volume = purchase price of X consumption volume of X per product * product volume Impact of change in product volume = Purchase price of X of March * Consumption volume of X of March * (product volume of April it of March) 140000=2003.5(12001000) Impact of change in Consu. volume of X= Purchase price of X of March * (Consumption volume of X of April It of March)* product volume of April 72000=200(3.23.5)1200 Impact of change in purchase price of X=( Purchase price of X of April - it of March) * Consumption volume of X of April * product volume of April 19200=(195200)3.21200 III. COST ANALYSIS Homework -Factor Analysis 2. Production performance of April is very good. Compared with last month, production volume increased by 200 units up to 1200 units; Unit cost dropped bu $97 down to $899. Total production cost of April is $1,078,800 and it of March is $996,000. Compared with last month, why unit product cost decreased but total production cost increased? For the change of total production cost (+$82,800), how much is due to the decrease in unit product cost? Which factor inside unit product cost contributes the biggest saving? About the question 3> Which factor inside unit product cost contributes the biggest saving? Impact from unit product cost is 116,400, in which Unit cost impact = (unit cost of April -it of March) volume of product in April 91,200=(624700)120021,600=(198216)12003,600=(7780)1200 Material X contributed biggest saving inside unit cost impact we can continually dig out the reason: Cost of X used per product = purchase price of X per kgkgs used to product one product 2. Production performance of April is very good. Compared with last month, production volume increased by 200 units up to 1200 units; Unit cost dropped by $97 down to $899. Total production cost of Aprill is $1,078,800 and it of March is $996,000. Compared with last month, why unit product cost decreased but total production cost increased? For the change of total production cost (+$82,800), how much is due to the decrease in unit product cost? Which factor inside unit product cost contributes the biggest saving? About the question 3) Which factor inside unit product cost contributes the biggest saving? Total cost of X= Unit cost of X per product * product volume = purchase price of X consumption volume of X per product * product volume Impact of change in product volume = Purchase price of X of March * Consumption volume of X of March * (product volume of April it of March) 140000=2003.5(12001000) Impact of change in Consu. volume of X= Purchase price of X of March * (Consumption volume of X of April It of March)* product volume of April 72000=200(3.23.5)1200 Impact of change in purchase price of X=( Purchase price of X of April - it of March) * Consumption volume of X of April * product volume of April 19200=(195200)3.21200

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