Colombo Frozen Yogurt Case Study using Activity Analysis

l PROFITANDLOSS BYSEGMENT -PRE-ABC Colombo Soft-Serve FrozenYogart Income Statement Category ImpulseSegment Yogart Shops Line Total # Sales inCases 1,500,0001,200,000300,000 I Sales Revenue $29,850,000 $ 23,880,000 $ 5,970,000 2 Less: PricePromotions 4,500,0003,600,000900,000 3 Net Sales (Line 1 -2) $25,350,000 $ 20,280,000 $ 5,070,000 4 Less: CostofGoods Sold $17,250,000 13,800,0003,450,000 5 Gross Margin =Net Sales -COGS (Line3-4) $ 8,100,000 # $ 6,480,000 $ 1,620,000 6 Less: Merchandising Expenses 1,725,0001,380,000345,000 7 Less: Selling General &Admin. Expenses 1,185,000 948,000237,000 8 Net Income (Line7 -8-9) $ 5,190,000 # $ 4,152,000 $ 1,038,000 ACTIVITY BASEDCOSTING ANALYSIS Colombo Soft-Serve FrozenYogart Income Statement Cost ImpulseYogart Category Cost Per SegmentShopsTotal Impulse Segment Yogart Shops Driver Driver QuantityQuantityQuantity Line Total # Sales inCases 1,500,0001,200,000300,000 I Sales Revenue $29,850,000 $ 23,880,000 $ 5,970,000 2 Less: PricePromotions 4,500,0003,600,000900,000 3 Net Sales (Line 1 -2) $25,350,000 $ 20,280,000 $ 5,070,000 4 COGS (ingred., pkg.&storing) $ 14,250,000 $ $Cases $9.50percase 1,200,000 300,0001,500,000 5 COGS (pickpack&shipping) Pallets 300,000 Pallets $75perpallet 800 3,200 4,000 6 COGS (pickpack&shipping) Ind.Cases 2,700,000 Ind.Cases $2.25perindo case 1,140,000 60,0001,200,000 7 Total CostofGoods Sold(Line 4+ 5+ 6) $17,250,000 $ $ 8 Gross Margin =NetSales -COGS (Line3-7) $ 8,100,000 $ $ 9 Less: Merchandising Expenses 1,725,000 Kits $500perkit 3,36090 3,450 10 Less: Selling General &Admin. Expenses 3,900,000 Time %oftime 99%1%100% I I Net Income (Line8 -9-10) $ 2,475,000 $ $