Bin Analysis argin Analysis eing able to calculate a healthy Margin Analysis will help the Research & Development Department understand how to change the cost of aterial and the Production Department understand how to change the cost of labor. bu will need: - The Production Analysis report (page 4 of the Capstone Courier for Round 0 The Segment Analysis reports (pages 5-9) of the Capstone Courier for Round 0 Determining Current Margin and Sh Name Al Adam AR Agne 100 Unit Units inven Sold 900 1.783 30 w 40 158 78 314 62 Primary Sement Trad Low High Pim Age Pin Revision Date Dec 31 MTBE CoordCoord Price 11/21/2010 31 17500 5.5 14.5 128.00 5/25/2000 46 14000 3.0 17.0521.00 11/2012 1.7 23000 8.0 120 98.00 6/30/2011 25 25000 94 15.5 | $33.00 5/25/2011 26 19000 40 11.0533.00 Mat Labor Coscos $11.50 $749 $781 $7.12 $15.95 5857 $15.87 $8.57 $13.62 857 Contr. Mare 20% 27% 395 23% 30% Over ime 0% 30% OX ON On multon Capacity Nud NePlan Round Round Us 40 1.800 60 50 1.400 120W 3.0 900 45% 3.0 600 73 30 600 635 The product details are for example only. Your product names and data may differ, but the process to calculate margins is Idention. Useful formulas: Contribution Margin(s) = Price - Materinl Cost + Labor Cost) Margin Percentage (%) = Contribution Margin/Price Calculating Margin Activity In the table below enter each product's price, material cost, and labor cost found in your report, and note whether or not a second shift was used (Y/N). Then, use the values you entered to calculate the Contribution Margin and the Margin Percentago. Incomplete Current Margin Product Name Price Material Cost Labor Cost Second Shift (Y/N) Contribution Margin ($) Contribution Margin(96) 11.50 Traditional - Able 28.00 Low End Acre 21.00 7.81 3.0 000 69% Agape 314 62 1/25/2011 26 10000 4.0 11.0533.00 $13.62 50.57 30% 0% The product details are for example only. Your product names and data may differ, but the process to calculate margins in identical. Useful formulas: Contribution Margin(s) = Price - (Material Cost + Labor Cost) Margin Percentage (%) = Contribution Margin/Price Calculating Margin Activity In the table below enter each product's price, material cost, and labor cost found in your report, and note whether or not a second shift was used (Y/N). Then, use the values you entered to calculate the Contribution Margin and the Margin Percentage. Incompleto Material Cost Labor Cost Second Shift (Y/N) Contribution Margin ($) Contribution Margin (%) 11.59 7.81 Current Margin Product Name Price Traditional Able 28.00 Low End Acre 21.00 High End Adam 38.00 Performance Aft Size Agape 33.00 The Round 0 Capstone Courier 15.98 33.00 15.87 13.62 Determining Margin Potential Finding the maximum amount of profit you can generate from one unit of a product is called Margin Potential. This is useful for a company when making a decision about whether to go into production or not. In its simplest form, you can calculate Margin Potential as: Margin Potential = Maximum Price - Minimum Unit Costs Price Use the information table below to find the maximum price that customers doem acceptable. You can find this in the Customer Buying Criteria for each segment Minimum Material Cost Minimum Labor Cost