Report-Report Interface  

Use

On the Execute Profitability Report Plan/act. var. cum screen, the first section of the lowest screen area shows you a detailed analysis of the contribution margin for the product, revenue, and discount, as well as detailed product cost data.

You can display every level of the contribution margin schema (for example, data is summarized at division level)

The following procedure is based on the assumption that you are not happy with the product’s contribution margin 3 in % (first column, last report row).

Using the report-report interface, you call up a test report to ascertain how you can increase the contribution margin for this product.

 

Procedure

  1. Select the product LC-40C.
  2. Choose .
  3. On the Selection: Contribution Margin Analysis screen, leave the default value of 20% as well as the other defaults unchanged and select .

    4. The system displays the simulation report. In the first column, you can see actual data. Note that the margin % is less than 20%. The second column displays plan data. In the third column, the system simulates a margin of 20%. The system calculates by how much the variable and fixed manufacturing costs and the overhead surcharges would have to be reduced to increase the margin. The assumption is that the variable and fixed manufacturing costs and the overhead surcharges would be reduced in proportion to the actual costs.

  4. Choose .
  5. In the dialog box, choose Yes.

    6. The original report appears.

  6. Remain on this screen.