1. 17 -1 Tactical Decision Making 战术决策 ( 短期决策 ) CHAPTER6

2. 17 -2 1.Describe the tactical decision-making model. 2.Explain how the activity resource usage model is used in assessing relevancy. 3.Apply tactical decision-making concepts in a variety of business situations. 4.Choose the optimal product mix when faced with one constrained resource. 5.Explain the impact of cost of pricing decisions. 6*.Use linear programming to find the optimal solution to a problem of multiple constrained resources. (Appendix) ObjectivesObjectives

3. 17 -3 一、 Model for Making Tactical Decisions Step 1. Recognize and define the problem. ContinuedContinued Increase capacity for warehousing and production. Step 2.Identify alternatives as possible solutions to the problem; eliminate alternatives that are clearly not feasible. 1.Build new facility 2.Lease larger facility; sublease current facility 3.Lease additional facility 4.Lease warehouse space 5.Buy shafts and brushings; free up needed space

4. 17 -4 Model for Making Tactical Decisions Lease warehouse space: Variable production costs$345,000 Warehouse lease135,000 Buy shafts and bushings externally: Purchase price$460,000 Step 3.Identify the costs and benefits associated with each feasible alternative. Classify costs and benefits as relevant or irrelevant, and eliminate irrelevant ones from consideration. ContinuedContinued

5. 17 -5 Model for Making Tactical Decisions Step 4.Total the relevant costs and benefits for each alternative. ContinuedContinued Lease warehouse space: Variable production costs$345,000 Warehouse lease 135,000 Total$480,000 Buy shafts and bushings externally: Purchase price$460,000 Differential cost$ 20,000

6. 17 -6 Model for Making Tactical Decisions Step 5.Assess qualitative (non-cost) factors. 1.Quality of external suppliers 2.Reliability of external suppliers 3.Price stability 4.Labor relations and community image Step 6. Make the decision. Quality of shafts 轴 and brushing 电刷 is significantly lower Not reliable Continue to produce shafts and bushings internally; lease warehouse

7. 17 -7 Relevant Costs 相关成本 Relevant costs are future( 未来 ) costs that differ across alternatives. A cost must not only be a future cost but most also differ between alternatives. 二、 Activity Resource Usage 耗用 Model 模型 and Assessing 评价 Relevancy 相关性

8. 17 -8 Flexible 灵活 resources can be easily purchased in the amount needed and at the time of use… like electricity( 电力 ).

9. 17 -9 Committed resources( 已承诺资 源 ) are purchased before they are used, such as salaried employees.

10. 17 -10 a. Demand Changes Relevant Flexible Resources b. Demand Constant Not Relevant Activity Resource Usage Model and Assessing Relevancy

11. 17 -11 Activity Resource Usage Model and Assessing Relevancy Committed Resources (Short-Term) Committed Resources (Short-Term) Supply – Demand = Unused Capacity a.. Demand Increased < Unused Capacity 闲置 Not relevant b. Demand Increased > Unused Capacity Relevant c. Demand Decease (Permanent) 1.Activity Capacity Reduced Relevant 2.Activity Capacity Unchanged Not Relevant

12. 17 -12 * 短期经营决策的有关概念  相关收入 —— 与特定方案相联系，在短期经营中予以 考虑的方案  相关成本 —— 与特定方案相联系，能对特定决策产生 影响成本 增量成本 —— 某方案的单位变动成本与相关业务量乘积 机会成本 —— 在经济决策中应由中选的最优方案负担的按所 放弃次优方案潜在收益计算的那部分资源损失 专属成本 —— 归属某特定方案的固定成本或混合成本 加工成本 可分成本 可避免成本 可延缓成本

13. 17 -13  无关成本 沉没成本 —— 沉入成本或旁置是指由于过去决策结果而 引并已经实际支付款项的成本 共同成本 —— 应当由多个方案共同负担的注定要发生的 固定成本或混合成本 联合成本 不可避免成本 不可延缓成本

14. 17 -14 Important: Short-term Perspective 短期视野 > Important: Short-term Perspective 短期视野 > Important: Short-term Perspective 短期视野 > Important: Short-term Perspective 短期视野 > 三、 Illustrative Examples ( 举例 ) of Relevant Cost Applications ( 应用 ) Tactical Decision 归纳为以下几种情况： 1. Make or Buy 自制与外购 2. Keep or Drop 取舍 3. Special Order 特殊订单 4. Sell or Process Further 销售或进一步加工 5. Product Mix 产品组合

15. 17 -15 Tactical Decision 归纳为以下几种方法 单位资源贡献边际法 贡献边际总额分析法 差别损益分析法 相关损益分析法 相关成本分析法 成本差别 1 单位资源贡献边际＝单位 贡献边际／单位产品 资源消耗定额 —— 哪个 指标大，哪个指标优 2 相关收入不为零、相关成 本全部为变动成本、不涉及已 承诺成本 3 两个相关排斥方案差别损益 取舍 4 适用多方案差别损益分析 5 相关收入为零，哪个方案相 关成最低、哪个方案最优 6 两方案相关固定成本 (FC) 与单位变动成本 (@VC) 相矛盾，成本无差别点业务量 ＝两方案相关固定成本之差／两方案单位变动成本之差 x 0 =(a 1 -a 2 )/(b 2 -b 1 )

16. 17 -16 以 Cost Indifference Point 解决新产品决策 Background: ABC Co. decisides to produce Component A ， with either Option B or C. In Option B, the fixed cost is to be $240000 ， and the variable cost per unit is $80. In Option C, the relevant fixed cost is $16000 ， variable cost per unit is $120 Solution: Suppose alternative B’s FC=a 1 ， @FC=b 1 ； Option C’s FC=a 2 ， VC per unit= b 2 since ， a 1 =240000>a 2 =160000; b 1 =80<b 2 =120, which means they conflict each other to some extent. So we may apply the “ Cost Indifference Point ” method. CIP = (a 1 -a 2 )/(b 1 -b 2 ) = (240000-160000) ÷( 120-80) =2000 units Therefore ： when the output of A is less then 2000units ， Option C is preferrable ； when A’s requirement is larger than 2000 units ， Option B is a good choice.

17. 17 -17 Activity Resource Usage Model and Assessing Relevancy Committed Resources (Multi-period Capacity) Committed Resources (Multi-period Capacity) Supply – Demand = Unused Capacity a.. Demand Increased < Unused Capacity Not relevant b. Demand Decreased (Permanent) Relevant c. Demand Increase > Unused Capacity Capital Decision

18. 17 -18 1. Make or Buy 某公司 Swasey Manufacturing currently produces an electronic component used in one of its printers. Swasey must produce 10,000 of these parts. The firm has been approached 接触 by a supplier who offers to build (=make) the component to Swasey’s specifications for $4.75 per unit.

19. 17 -19 1. Make or Buy Total Cost Unit Cost Rental of equipment$12,000$1.20 Equipment depreciation2,0000.20 Direct materials10,0001.00 Direct labor20,0002.00 Variable overhead8,0000.80 General fixed overhead 30,000 3.00 Total$82,000$8.20 The full absorption cost for the 10,000 parts is computed as follows: Enough material is on hand to make 5,000 parts.

20. 17 -20 1. Make or Buy 自制与外购 Alternatives Differential Make Buy Cost to Make Rental of equipment$12,000------- $12,000 Direct materials5,000-------5,000 Direct labor20,000-------20,000 Variable overhead8,000-------8,000 Purchase cost 采购成本 -------$47,500-47,500 Receiving Dept 收货 labor ------- 8,500 - 8,500 Total$45,000$56,000$-11,000 The cost to make or buy 5,000 units follows: Make

21. 17 -21 某公司 Norton Materials, Inc. produces concrete blocks 水泥预制板, bricks 砖, and roofing tile 瓦片. The income statement is prepared: 2. Keep-or-Drop Decisions 取舍 Blocks Bricks Tile Total Sales revenue$500$800$150$1,450 Less: Variable exp. 可变 250 480 140 870 Contribution margin$250$320$ 10$ 580 Less: direct fixed expenses 直接固定费用 : Advertising 广告 $ 10$ 10$ 10$ 30 Salaries 工资 374035112 Depreciation 折旧 53 40 10 103 Total$100$ 90$ 55$ 245 Segment margin 各部边际贡献 $150$230$(45)$ 335 Less: Common fixed exp. 公共固定费用 125 Operating income 营业利润 :$ 210

22. 17 -22 Differential Keep Drop Amount to Keep Sales$150----$150 Less: Variable expenses 140---- 140 Contribution margin$ 10----$ 10 Less: Advertising -10-----10 Cost of supervision -35---- -35 Total relevant benefit (loss) $- 35$ 0$- 35 Preliminary 初步 figures indicate 显示 : that the tile segment should be dropped!

23. 17 -23 2. Keep-or-Drop Decisions But they determine that dropping the tile section will reduce 8 to10% of sales in all sections as follows: $50,000 for blocks, $64,000 for bricks, and $150,000 for roofing tile. The summary in thousands is shown below: Sales$1,450$1,186.0$264.0 Less: Variable expenses 870 666.6 203.4 Contribution margin$ 580$ 519.4$ 60.6 Less: Advertising -30-20.0-10.0 Cost of supervision -112 -77.0 -35.0 Total$ 438$ 422.4$ 15.6 Differential Keep Drop Amount to Keep ∴ 决策是 Keep roofing tile segment!

24. 17 -24 2. Keep-or-Drop Decisions ( 变一下 ) Further more, if dropping the tile section will only reduce a half of the losses of sales in all sections, i.e.: $25,000 for blocks, $32,000 for bricks, and $150,000 for roofing tile. The summary in thousands will be shown as follows: ∴ 决策变成 : Drop the roofing tile segment! $1,450 – $150 –$25 – $32 $870 – $140 – $12.5 – $19.20

25. 17 -25 2. Keep-or-Drop Decisions( 续 ) The marketing manager sees the market for floor tile as stronger and less competitive than roof tile. He submits the following figures for floor tile sales: ( 见 p.530) 情形 2: Alternate Use of Facilities 设备的其他用途的情况 Sales$100,000 Less: Variable expenses 40,000 Contribution margin$ 60,000 Less: Direct fixed expenses 55,000 Segment margin$ 5,000

26. 17 -26 Drop and Differential Keep Replace Amount to Keep Sales$1,450$1,286.00$164.00 Less: Variable expenses 870 706.60 163.40 Contribution margin$ 580$ 579.40$ 0.60 $1,450 – $150 –$50 – $64 + $100 $870 – $140 – $25 – $38.40 + $40 ∴ Decision: Continue 继续 making roof tile! 2. Keep-or-Drop Decisions( 续 ) 情形 2: Alternate Use of Facilities 设备的其他用途的情况 ( 续 )

27. 17 -27 3. Special-Order Decisions An ice cream company is operating at 80% of its productive capacity (20,000,000 half-gallon units). The unit costs associated with producing and selling 16 million units are shown on the next slide.

28. 17 -28 3. Special-Order Decisions Variable costs: Dairy ingredients$ 0.70 Sugar0.10 Flavoring0.15 Direct labor0.25 Packaging0.20 Commissions0.02 Distribution 分销 0.03 Other 0.05 Total variable costs$ 1.50 Wholesale price = $2.00 Total fixed costs 0.097 Total costs $1.597

29. 17 -29 Special-Order Decisions An ice cream distributor from a geographic region not normally served by the company has offered to buy two million units at $1.55 per unit, provided its own label can be attached to the product. The distributor has agreed to pay the transportation cost.

30. 17 -30 Special-Order Decisions Variable costs: Dairy ingredients$ 0.70 Sugar0.10 Flavoring0.15 Direct labor0.25 Packaging0.20 Commissions0.02 Distribution0.03 Other0.05 Total variable costs $ 1.50 Total fixed costs 0.097 Total cost $1.597 Which costs are irrelevant? $1.45 $1.45 Accept the offer ($0.10 x 2,000,000 = $200,000 more profit).

31. 17 -31 4. Sell or Further Process Yield at Split-Off Grade A 800 lb Sell for $0.40/lb Grade B 600 lb Grade C 600 lb Joint Cost $300 Bagged 120 Bags Cost $0.05/Bag Sell for $1.30/Bag Applesauce 500 16-oz Cans Cost $0.10/lb Sell for $0.75/can Further Processing

32. 17 -32 4. Sell or Further Process Process Differential Amount Further Sell to Process Further Revenues$450$150$300 Processing cost 120 ---- 120 Total$330$150$180 结论 : Further process!

33. 17 -33 四、 Product Mix Decisions 产品组合决策 产品组合决策 Example: Product X & Y, unit C.M.: $25, $10 1. One constrained Resource: e.g. limited machine-hour 2. Multiple constrained Resources: limitations; 3. Liner programming 线性规划

34. 17 -34 p540 附录 :Linear Programming The maximum demand for Gear X is 15,000 units and the maximum demand for Gear Y is 40,000 units. The contribution margin for X is $25 and for Y is $10. TCM = $25X + $10Y Two machine hours are used for each unit of Gear X, and 0.5 machine hour is used for a unit of Gear Y. 2X + 0.5Y  40,000

35. 17 -35 Linear Programming Max. Z = $25X +$10Y 2X + 0.5Y  40,000 0  X  15,000 0  Y  40,000 Subject to:

36. 17 -36 80 – 75 – 70 – 65 – 60 – 55 – 50 – 45 – 40 – 35 – 30 – 25 – 20 – 15 – 10 – 5 – 0 – 5 10 15 20 25 | | | | | Machine Hours Constraint 2X + 0.5Y  40,000 Demand Constraint X  15,000 Demand Constraint Y  40,000 Feasibility Area 可行区域 A B C DE

37. 17 -37 Linear Programming Corner Point X-Value Y-Value Z = $25X + $10Y A00$ 0 B150375 C1520575 D1040650 E040400 Manufacture 10,000 units of Gear X and 40,000 of Gear Y.

38. 17 -38 五、 Two Approaches to Pricing 1. Cost-Based Pricing 2.Target Costing and Pricing

39. 17 -39 定价决策 一、定价决策分析的范围及应当考虑因素 垄断价格：完全自由竞争价格和企业可控制价格 定价时可考虑商品价性，成本的消耗水平，商品质量供求关系与竞争 形，价格的弹性、所处周期等 二、以成本为导向 (cost-based) 的定价方法 １、总成本定价法：价格＝（预计总成本＋目标利润）／预计 产销数量 ２、收益比率定价： 完全成本法：价格＝单位产品成本／（１－销售毛利率） 变动成本法：价格＝单位变动成本／（１－贡献边际率） ３、成本加成 (markup) 定价法 价格＝单位产品成本＋加成额 三、以需求导向的定价方法 边际收入＝边际成本、边际利润＝０

40. 17 -40 Revenues$856,500 Cost of goods sold: Direct materials$489,750 Direct labor140,000 Overhead 84,000 713,750 Gross profit$142,750 Selling and administrative expenses 25,000 Operating income$117,750 1. Cost-Based Pricing

41. 17 -41 Markup on COGS= (S & A expenses + Operating income) ÷ COGS = ($25,000 + $117,750) ÷ $713,750 = 0.20 Determining Markup 加成 Percentages Markup on direct materials = (DL + OH + S & A expenses + Oper. income) ÷ Direct mater. = ($140,000 + $84,000 + $25,000 + $117,750) ÷$489,750 = 0.749

42. 17 -42 Determining Markup Percentages Direct materials (computer components, etc.)$100,000 Direct labor (100 x 6 hours x $15)9,000 Overhead (60 percent of direct labor cost) 5,400 Estimated cost of goods sold$114,400 Plus 20 percent markup of COGS 22,880 Bid price$137,280

43. 17 -43 2. Target Costing and Pricing Target costing is a method of determining the cost of a product or service based on the price (target price 目标 价格 ) that customers are willing( 愿意 ) to pay. This is referred to as price-driven costing.

44. 17 -44 Legal Aspects of Pricing Predatory pricing 掠夺性定价法. The practice of setting prices below cost for the purpose of injuring or eliminating competitors. Price discrimination 价格歧视. Charging different prices to different customers for essentially the same product. The Robinson-Patman Act( 法律 ) is the most potent weapon against price discrimination, but it doesn’t cover services and intangibles.

45. 17 -45 The End Chapter Seventeen