Carlene Hatcher
Capability Example
Manufacturing Goals Planner
Potential Outcome Forecaster
From To
Date range (m/d/yyyy) 3/1/2023 3/31/2023
Enter values in the colored areas below
ASSUMPTIONS FOR THIS ANALYSIS:
1.  Fixed costs are up to date
2. Variable costs reflect inventory current prices
3. Only one product is produced or sold
CURRENT STATUS: Changes for PLANNING SCENARIO
    Modify the values below in the colored areas.
  ENTER In YELLOW     Use a "-" for reduction adjustments Enter Amt OR %
      Change Reason Amount/Qty %
Variable Costs / Unit: $20   Change unit costs     -25%
Fixed Costs: $55,000   Change fixed costs New Building $2,000  
Sales Price: $25   Change sale price Classier sales venue   40%
    Change units sold   2,000  
Units Available for sale at Beginning of period 4,000  
Units Finished (made available for sale) during the period 3,000  
Units Unsold at End of period 1,000   NEW VALUES
  Units Sold (calculated)  6,000        
    Variable Costs / Unit:   $15
COGS $130,000   Fixed Costs:   $57,000
Operating Expenses $2,000   Sales Price:   $35
Tax Expense $100     Units Mfgd or Sold         8,000
CURRENT POTENTIAL OUTCOME - PLAN
Sales Price $25 Sales Price $35
Direct/Variable Costs $20 Direct/Variable Costs $15
Contribution amount per unit $5 Contribution amount per unit $20
Contribution Margin 20% Contribution Margin 57%
Total Revenue from 6000 units $150,000 Total Revenue from 8000 units $280,000
Total direct costs to mfr/sell 6000 units $120,000 Total direct costs to mfr/sell 8000 units $120,000
Contribution Margin from  units at a $5/unit CM $30,000 Contribution Margin from $5/unit CM x 2000 units $160,000
BREAKEVEN POINT IN UNITS BREAKEVEN POINT IN UNITS - PLAN
Breakeven point with $25 sales price and $20 unit cost Breakeven point with $35 sales price and $20 unit cost
Fixed Costs $55,000 Fixed Costs $57,000
Contribution Margin/unit $5 Contribution Margin/unit $20
Breakeven point in units 11,000 Breakeven point in units 2,850
PROFIT SUMMARY / INCOME STATEMENT PROFIT SUMMARY / INCOME STATEMENT -- PLAN
Total Revenue from 6000 units $150,000 Total Revenue from 15 units $280,000
Cost of Goods Sold $130,000 Cost of Goods Sold $173,333
Gross Profit $20,000 Gross Profit $106,667
Operating Expenses $2,000 Operating Expenses $2,000
Earnings before taxes $18,000 Earnings before taxes $104,667
Income tax expense $100 Income tax expense $100
Net Income $17,900 Net Income $104,567
Net Profit Margin  12% Net Profit Margin  37%