Accounting for Managers: Interpreting accounting information for decision-making

Table A3.6

Cryogene Corp.

(a)

Cryod

Genet

Yogen

Total

Sales units

3,000

2,000

1,000

Price (£)

1,500

1,150

2,500

Sales £’000

4,500

2,300

2,500

9,300

Unit costs:Direct materials

450

600

900

Direct labourDesign @ £10

50

20

30

Manufacture @ £20

240

60

160

Assembly @ £15

60

90

60

Total direct labour

350

170

250

Prime costs per unit

800

770

1,150

Total variable costs

2,400

1,540

1,150

5,090

Contribution margin

2,100

760

1,350

4,210

Manufacturing overhead

3,500

Gross profit

710

Less non-mfg overhead

600

Net profit

110

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