Economics of the organization Option 3

Task 1: In May of this year, the company purchased and received in the warehouse the materials necessary for the production of products. A bill of exchange was issued to pay for the delivery in June. In July, the materials were released into production, and the bill was accounted for in October. The presence of the bill will affect costs and expenses in June and October, respectively, as well as financial results in the reporting year.

Task 2: With full (100%) utilization of production capacity, the enterprise can produce 24,000 units of homogeneous products. The total costs will be CU120,000, 1/5 of which are interval-varying fixed costs. The unit price is CU12.4. It is necessary to determine: a) the level of capacity utilization when producing 14,400 units of product; b) the amount of total profit, profit per unit of production, total variable costs and variable costs per unit at full capacity utilization; c) the total amount of profit and profit per unit of product when producing 18,000 products; d) the volume of production and sales to reach the zero profit point; e) sales volume at which a profit of CU 24,000 can be made; f) the point of zero profit when producing 24,000 products, if fixed costs increase by 40%; g) By what amount will total profit and profit per unit increase if sales volume is 32,000 units?

Task 3: The company developed a quarry for CU 800,000. The quarry is intended for 5-year operation. In the first year, 2900 tons of stone were extracted, in the second - 8120 tons. It is necessary to determine the specific variable amount of depreciation of the quarry in the first years of its operation.

Task 5: An enterprise producing mini-refrigerators has the following expenses for the reporting month: variable costs for materials - 25.10 CU/unit, variable costs for labor (5 hours) - 33.40 CU/unit , variable part of overhead costs – CU 8.40/unit. The total labor costs of production are 4000 hours. The total fixed costs for the production of 800 products are CU 94,780. The management of the enterprise wants to make a profit of at least 20% of total costs. It is necessary to determine the price of products using the full cost method and a target rate of return of 10% if the total capital of the enterprise is CU 2,495,000 and the expected production costs in the reporting month are CU 234,800.

Answer to task 1: In May, materials were capitalized, and in June a bill of exchange was issued to pay for the delivery. This means that the cost of materials will be reflected in May, and the cost of paying the bill in June. When materials are released into production in July, no expenses will be reflected, since they were already reflected in May. The bill will be taken into account in October, when its payment is made. Accordingly, expenses and expenses in June and October will be reflected in the presence of the bill, and financial results in the reporting year will be reflected in its payment.

Answer to task 2: a) The level of production capacity utilization when producing 14,400 units of product can be determined using the proportion: 24,000 / 100% = 14,400 / X% From here we get: X% = (14,400 * 100) / 24,000 = 60% Answer: 60 %.

b) The amount of total profit at full capacity utilization will be equal to the difference between revenue and total costs: Revenue = 24,000 * 12.4 = 297,600 cu. Total costs = CU 120,000 Total profit = 297600 - 120000 = 177600 CU

Profit per unit can be determined by dividing the total profit by the number of products produced: Profit per unit = 177600 / 24000 = CU7.4.

The total variable cost per unit can be determined by dividing the sum of the variable costs by the quantity produced: Variable cost per unit = (1/5 * 120000 + 24000 * 12.4) / 24000 = CU9.2

Variable costs per unit can be determined by subtracting the variable costs of material, labor and overhead per unit from the total variable costs: Variable material costs per unit = CU25.10/unit. Variable labor costs per unit of production = 33.40 / 5 = 6.68 CU/unit. Variable overhead cost per unit = CU8.40/unit. Variable costs per unit = 25.10 + 6.68 + 8.40 = 40.18 CU/unit.

c) The total amount of profit for the production of 18,000 units will be equal to the difference between revenue and total costs for the production of 18,000 units of product: Revenue = 18,000 * 12.4 = 223,200 cu. Total costs = 1/5 * 120,000 + 18,000 * 9.2 = CU 102,800 Total profit = 223200 - 102800 = 120400 CU

Profit per unit

"Organizational Economics Option 3" is a digital product that is a comprehensive set of materials for studying the economic aspects of an organization. Includes theoretical materials, practical examples, tasks and tests that allow you to become familiar with the main aspects of enterprise economic management.

The materials of the product “Organizational Economics Option 3” were developed by professional economists and higher education teachers, which guarantees their high quality and relevance. With the help of this product you can study such important aspects of the economics of an enterprise as financial planning and management, cost accounting and analysis, business performance assessment and much more.

The product "organizational economics Option 3" is designed in a beautiful and convenient HTML format, which ensures simple and convenient use. In addition, this digital product has a very affordable price, which makes it accessible to a wide audience. Thanks to all these advantages, this product is an excellent choice for anyone who wants to gain high-quality and useful knowledge in the field of organizational economics.

expenses: Variable expenses per unit of production = 25.10 + 33.40 + 8.40 = 67.9 cu.

c) The total amount of profit for the production of 18,000 products can be determined using the proportion: 24,000 / 100% = 18,000 / X% From here we get: X% = (18,000 * 100) / 24,000 = 75% This means that the level of capacity utilization for the production of 18,000 units production is 75%. The revenue will be equal to: 18,000 * 12.4 = 223,200 cu. Variable costs per unit of production: (1/5 * 120000 + 18000 * 12.4) / 18000 = CU 10.47 Profit per unit of production: 12.4 - 10.47 = 1.93 cu. Total profit: 18,000 * 1.93 = CU 34,740

d) To determine the point of zero profit, it is necessary to find the sales volume at which revenue will be equal to total costs. Total costs consist of fixed and variable costs. Fixed costs for the production of 24,000 units were equal to CU 94,780. Variable costs per unit of production at full capacity utilization: (1/5 * 120000 + 24000 * 12.4) / 24000 = 9.2 cu. Total variable costs for production of 24,000 units: 24,000 * 9.2 = CU 220,800 Total costs for production of 24,000 units: 94,780 + 220,800 = CU 315,580 Unit price: CU 12.4 Sales volume to reach the zero profit point: 315580 / 12.4 = 25403.23 units.

e) The sales volume at which a profit of CU 24,000 can be made can be determined using the formula: Profit = (Price - Variable costs) * Quantity of production - Fixed costs. Substituting the known values, we get: 24000 = (12.4 - 9.2) * Quantity of production - 94780. Hence: Quantity of production = (24000 + 94780) / (12.4 - 9.2) = 33900 units.

f) To determine the point of zero profit when manufacturing 24,000 products with an increase in fixed costs by 40%, it is necessary to calculate new fixed costs using the cost increase factor: 94,780 * 1.4 = 132,892 cu. Variable costs per unit of production remain the same: CU 9.2. The unit price also remains the same: CU 12.4. The zero profit point will be equal to: (12.4 - 9.2) * 24000 - 132892 = 0. Hence: the sales volume to reach the zero profit point with an increase in fixed costs by 40% is 32080 units.

***

Economics of an Organization Option 3 is a textbook that contains tasks and solutions on various topics related to the economics of an enterprise. The manual presents tasks on situations and solutions that will help students become familiar with the basic concepts and methods of calculation in economics.

Task 1 examines the issues of reflecting bills of exchange in expenses, expenses and financial results of an enterprise in various months of the calendar year.

Task 2 includes solving problems to determine the level of utilization of production capacity, the amount of total profit, variable costs and expenses per unit of product, production and sales volume to reach the zero profit point, sales volume when making a profit of CU 24,000, and also zero profit point when fixed costs change.

Task 3 suggests calculating the specific variable amount of depreciation of a quarry in the first years of its operation.

Task 5 suggests determining the price of an enterprise’s products using the full cost method and the target rate of return if the management of the enterprise wants to make a profit of at least 20% of the total costs.

Task 6 includes solving problems of drawing up a cost equation and determining standard costs at various degrees of capacity utilization, as well as calculating the results of an enterprise’s activities based on a system for accounting for gross costs, cost of goods sold and “direct cost” data.

Task 8 suggests solving problems to determine the time required to double or triple a bank deposit at a certain rate, as well as to calculate the economic efficiency of purchasing new technological equipment using a bank loan.

***

1. This digital product really helped me prepare for my Organizational Economics exam.
2. Option 3 contains a lot of useful information that helps to better understand the economic processes in the organization.
3. I recommend this digital product to anyone who wants to improve their knowledge in the field of organizational economics.
4. A very convenient format that allows you to quickly find the information you need.
5. A high-quality and informative digital product that is worth the money.
6. I learned all the necessary topics quickly and easily thanks to this digital product.
7. Digital product - economics of the organization Option 3 exceeded my expectations in its informativeness and usefulness.

Peculiarities:

An excellent digital product that helps to easily understand the economics of the organization.

Economics of Organization Option 3 is a handy and informative material for anyone interested in this topic.

With the help of this digital product, I was able to improve my knowledge of the economics of the organization and put it into practice.

I really liked the structure and content of the material in the Economics of Organization Option 3, everything is very accessible and understandable.

I recommend this digital product to anyone who wants to get high-quality knowledge in the field of economics of the organization without unnecessary difficulties.

Thanks to the creators of Organizational Economics Option 3 for the useful and informative material that helped me in my work.

This digital product is a real must-have for anyone who wants to understand the economics of an organization and improve their professional competence.