Solution:
We shall calculate the profit from product sales for each period and perform the factor analysis of profit.
Indicator |
During the previous period ("0") |
In fact by price (cost) of previous period |
In fact during the reporting period ("1") |
А |
1 |
2 |
3 |
|
|
|
|
2. Costs of production and sales (zq) |
|
|
|
3. Profit from the product sales (P) (row1- row2) |
|
|
|
1524
3170
3596
Denote:
1.
-
the change in the total profits from the sales of products;
2.
the change because of the influence of changes in prices (tariffs)
3.
the change because of the influence of changes in cost of sales;
4.
the change because of the influence of changes in the volume of
sales;
5.
the change because of the influence of changes in the structure of
goods sold.
Formulae for the calculation are:
1.
2.
3.
4.
5.
6.
-
the change of the total profit because of the influence of all
factors.
Determine the effect of studied factors on the change of the total profits from sales.
Effect of changes in prices (tariffs)
If the
total price index (rate of tariff) is determined by the formula:
, then the increase of profit under the influence of prices is
defined as the difference between the numerator and denominator of
this index:
.
Compare
the actual revenues from product sales at current prices
with the revenues from actual sales prices in the previous period
:
=13506-7534=+5972 thousand tenge.
Consequently, as a result of increasing the prices (tariffs) for goods sold, the enterprise received the additional profit equaled to 5972 thousand tenge.
Effect of changes in cost of sales
If the
total index of production costs is determined by the formula:
,
the change in production costs is defined as the
difference
between the numerator and denominator of the index:
=9910-4364=+5546
thousand tenge, the calculation showed that costs increased as a
result of growth of production costs. In turn, the increase in cost
of sales resulting in lower profits in the same amount:
=
-5546 thousand tenge.
Effect of changes in the volume of sales
Effect of changes in volume of sales to the total increase in profits from its sale is determined by the following formula:
,
where the meaning in the bracket shows the general index of physical
volume of goods sold
.
The sales volume has grown by 14,1%, hence, the profits due to this factor has increased in the same proportion: =1524∙0,141=+214,6 thousand tenge
Effect of changes in the structure of goods sold
When we save the assortment of products sold in the level of the previous period, each unit sold should contain part of profit as follows:
When we have the actual assortment, the ratio is:
Effect of changes in the structure of goods sold (assortment) to the change of the profit is determined by the formula:
=
= (0,4207592-0,2307692)∙7534=+1431,4 thousand tenge
The total change in profits from product sales compared with the previous period is:
=3596-1524=2072 thousand tenge
The influence of all the above factors to the change in the total profits from the sale of products is shown in the table:
Factor |
Impact factor |
|
+5972 |
2. Changing the cost of production |
-5546 |
3. Changing the volume of sales |
+215 |
4. Restructuring of goods sold (assortment) |
+1431 |
Total: |
+2072 |
The total change came under the influence of all factors is:
=5972-5546+215+1431=2072 thousand tenge
Conclusion. The total increase in profits from sales in the reporting period compared to the base period was due to the raised prices (tariffs) of goods sold, increasing the volume of sales and changing assortment of goods sold from goods that were in high demand. Negative component of the total increase in profits from the sales was the increase in production costs and, thus, lower profits from its sales.