Plastech, Inc.
Autor: Adnan • October 15, 2018 • 1,443 Words (6 Pages) • 442 Views
...
[pic 9]
The amount of &+.*/0 shows the reason why the decline in operatin% profits.
2. P##r e!"ense '#n(r#)
In )**+, the annual %ross profit is ),9-*, +1:, after ta#, the net profit is )1*,**):. @ut, in )** , the net profit after ta# is ), 1+: while the %ross profit is increasin% than last year + ,*// 4 ) 06 The new net profit after ta# in )** in down to &1/0, it is a $i% fail fi%ure. This is affected $y all e#penses are increasin% continuously.
- Production cost increases bydirect & indirect labor producti its increase. This increasing will good for enterprise in case the total producti e time is efficiency. but, parallel with the increasing of producti ity, the setup time is increasing while the producti e time increases insignificantly.
- Sales expenses : Sales expenses increase about 32% while sales revenue is up to 17% only. With such a low revenue, it can not compensate for any other expenses or related expenses like labor cost, other expenses .
Pa%e 3 of 1
---------------------------------------------------------------
Chung Ngoc Hieu – Mai Thanh Thao
- Setup time : with 33% increasing in direct labor productivity, but the productive time increasing amount is inefficiently, this thing explains why setup time becomes bigger and bigger. This proves the reason why plastech poor in controlling expenses.
- General & Administrative expense : 33% of increasing direct labor, the expenses give for administration is bigger.
. Insu$$&'&en( re-enue -#)ume
In $oth + fiscal year, we can see the sales re enues are lower than production cost.
[pic 10]
Income statement of discal year 1992-1993
Unit: $
No
Figures
1992
1993
%Dif
%value
Explainations
1
Gross profit
1, !9,"2#$!!! 1,954,394.000
244,966.00
13%
Increasing
2
Selling expenses
819, 86.000
1,199,366.000
3 9,580.00
32%
Increasing
General an! a!"inistrati#e
3
expense
643,228.000
6 8,459.000
35,231.00
5%
Increasing
4
$otal expense
1," 3,!1"$!!! 1,# ,#2&$!!!
414,811.00
22%
Increasing
5
peration profit
2" ,"1"$!!!
,& 9$!!!
&169,845.00'
(69%
)ecreasing
6 *ess ot+er expenses an! taxes
56,423.000
45,08 .000
&11,336.00'
(25%
)ecreasing
Net profit after taxes
1#9,991$!!!
31,"#2$!!!
&158,509.00'
(83%
)ecreasing
Fiscal year summary statistics
9
Sales& '
3,564,288.000
4,283,451.000
19,163.00
1 %
Increasing
10
-ro! ctions&i/s'
4,193,280.000 5,069,1 3.000
8 5,893.00
1 %
Increasing
11
#erage sale price& i/'
0.850
0.845
&0.01'
(1% )ecreasing
12
#erage pro! ction cost& i/'
0.442
0.459
0.02
4%
Increasing
13
#erageprofit& l/'
0.045
0.006
...