Revenue and Volume Variance

Polysar CASE Group 3
권경무 양주호 이유미 이재환 최영호

• Polysar Limited - Established on 1942, Now employed 6,650 people - Structure : Basic Petrochemicals, Rubber, Diversified Products

• Rubber Group is Profit Center - Rubber Group produced 46% of Polysar sales

Group 3 - 2/13

• NASA - Sarnia 1 Plant : Produce Butyl & HaloButyl → HaloButyl (from 1984) - Sarnia 2 Plant : Produce Butyl (operation 1984) 1) 1984 : 95,000 t 2) 1985 : 65,000 t

• EROW - Antwel plant : Produce Butyl & HaloButyl (1964, 1979 modified) 1) 1981 : Prduced Butyl(75%) & HaloButyl(25%) 2) 1985 : Prduced Butyl(50%, 45,000t), HaloButyl(50%, 45,000t) Transfer NASA to ERROW : Butyl(21,000t)

Group 3 - 3/13

Q1. The meaning and accuracy of the volume variance. • NASA Rubber Division의 Sales Performance(1986) Actual Net sales Revenue 63,239,000 Budget 58,660,000 Deviation 4,579,000 exceed 3,735,000 exceed

Gross Margin ※ Sales Volume Up

40,945,000

37,210,000

※ Feedstock Cost Down

Group 3 - 4/13

• NASA Rubber Division - Net Contribution(1986) Actual Budget Deviation

Volume Variance

- 11,375,000

-6,125,000

5,250,000 U

Gross Profit / NSR

8.2%

13.7%

-5.5%

Net Contribution

- 876,000

2,005,000

-2,881,000

Group 3 - 5/13

• Volume Variance ①
Volume Standard Fixed

②

③
Actual Tonnes Produced

Variance Cost Per Tonne

×

(

+

Demonstrated Capacity

)

톤당 가동률 - ③에 의해 결정

실제생산(톤)

생산능력 - Sarnia 2 (1984) - 과거 데이터 부족

※ 조업도 추정의 문제 ※ NASA to EROW 부문간 대체의 문제
Group 3 - 6/13

Q2. The best sales and production strategy for EROW Division, NASA Division and the Rubber Group in Total. • EROW Division Strategy Transfer Advantage (From NASA) Feedstock 내용 추가적인 고정비용 발생 없이도 제품구매 - 우선적으로 Halobutyl 생산 낮은 가격으로 제품구매 장기간 축적된 데이터(고객수요)를 통해 정확한 예산계획수립
Group 3 - 7/13

Accurate Budgeting

• NASA Division Strategy 내용 불리한 Volume Variance의 원인이 되는 부문간 대체는 NASA에 매우 불리

Not Transfer

Reach Capacity

SARNIA 2의 Production Capacity는