Sales 1000 Contribution 600 EBIT 200 Operating Profit 120 Profit Margin 12,0% RONA 15,0% Operating Profit 120 EVA 42,24 Cost of Capital 77,76 x WACC 9,7% x Net Assets 800 x Total Net Asset Turnover 1,25 : Sales 1000 Assets : Net Assets 800 Interest Free Liabilities 200 1000 + Current Assets 400 x (1-Rate of Income Tax) 0,6 Fixed Assets 600 Overhead 400 Variable Cost of Goods Sold 400 Source: www.my-controlling.de EVA-Chart 16,0% 1 14,0% 12,0% WACC/RONA 10,0% 1 8,0% 6,0% 4,0% 2,0% 0,0% 0 100 200 300 400 500 600 700 800 900 Operating Profit Net Assets 2 2 Cost of Capital Rate of Return of a Market Index 12% Market Risk Premium 5% Company Risk Premium 6% Cost of equity 13% Weighted Cost of Equity 8% x + Risk-Free Rate 7% Percentage of Total Capital Supplied by Equity 60% WACC 9,7% + After-Tax Cost of Debt x 4,8% Weighted Cost of Debt 1,9% % of Total Capital Supplied by Debt 40% After-Tax Operating Profit in % 60% Income Taxe Rate 40% Before-Tax Cost of Debt 8% Before-Tax Operating Profit in % 100% Beta Coefficient 1,1 x 7% Risk-Free Rate x x Sales Less: Variable cost of goods sold Contribution margin Less: Factory overhead Selling and admin. Net operating income (=EBIT) Less: Interest expense Net income before taxes Less: Income taxes Net income 1000 400 600 100 300 200 25,6 174 70 105 Current Assets: Cash Accounts Rec. Mat. Inv. Finished Gd. Inv. Total Cur. Assets Fixed Assets: Land Build. and Eqpt. Accumtd. Depr. Total Fixed Assets Interest Free Liabilities: Trade liability Advances received Accrual for income taxes Interest Free Liabilities 100 100 100 100 400 100 700 -200 600 100 50 50 200 Unit sales price Variable manufactoring cost per unit Contribution margin per unit Expected sales in units Planned Sales Variable manufactoring cost Contribution margin Product 1 9 5 4 2 18 10 8 Product 2 15 8 7 3 45 24 21 Product 3 20 14 6 4 80 56 24 Product 4 30 10 20 5 150 50 100 Product 5 49 20 29 6 294 120 174 Product 6 59 20 39 7 413 140 273 Total 182 27 1000 400 600 1 100 110 120 130 140 150 Stránka 8 Cost Center 1 Cost Center 2 Cost Center 3 Cost Center 4 Cost Center 5 Cost Center 6 Cost Center 7 Cost Center 8 Cost Center 9 Cost Center 10 Cost Center 11 Cost Center 12 Cost Center 13 Total Selling Overhead 200 Administration Overhead 100 Factory Overhead 100 200 100 100 Total 200 100 100 0 0 0 0 0 0 0 0 0 0 400 Income Taxe Rate Rate of Return of a Market Index Risk-Free Rate Beta Coefficient Before-Tax Cost of Debt Percentage of Total Capital Supplied by Equity Percentage of Total Capital Supplied by Debt 40% 12% 7% 1,1 8% 60% 40% Net Assets WACC RONA 0 9,7% 15,0% 800 800 800 800 800 9,7% 15,0% 0,0% 15,0% 0,0% 9,7% 77,8 120,0 Operating Profit = 120 Cost of Capital=77,76 Operating Profit - Cost of Capital = EVA = 42,24 RONA 15 % WACC 9,72 %