6.5. Contribution Margin Accounting

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Presentation transcript:

6.5. Contribution Margin Accounting Hints 6.5. Contribution Margin Accounting Financial Accounting - Where's the Money?

Which alternative to use Task 2 - Summary Range of products Which alternative to use 0 – 140,000 Outside supplier 140,001 – 400,000 Semiautomatic machine 400,001 - … Automatic machine Financial Accounting - Where's the Money?

Task 3 - Illustration Start Colour Ltd produces at full capacity   30,000 Pinky for their market a at excess capacity 6,000 24,000 Pinky for their market (plus an additional) 6,000 Greeny for Tindal Plc to utilize capacity b and instead produces (reduced from 30,000) 6,000 Greeny for Tindal Plc c and buys from Peter Plc 24,000 Pinky (reduced from 30,000) 6,000 Greeny for Tindal Plc 6,000 Pinky for their market Financial Accounting - Where's the money?