Hair Oil:Sales) Selling Price‚ per unit Liter= 338.55289 1.8 Contribution Margin per unit Liters = Selling Price per unit1.7 – Variable Costs per unit 1.6 = 173.45 1.9 Assuming that the average cost is almost constant for all the SKUs we get an approximation of the cost‚ selling price of the product and the per unit contribution. There for a 300 ML bottle‚ for which we have the offer the contribution shall be: (300/1000)*Contribution Margin per unit Liters1.8 = INR 52.04 1.91 Cost of the Pantene
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profitability even further. The answer lies in the other half of operations‚ known as costs. Variable costs are expenses that are directly associated with the sale of a good. When variable costs are subtracted from sales what is left is known as the contribution margin which gives an idea of how profitable your sales are. CRU’s variable
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BA 117 Problem Set #1 - CVP Deadline: November 26‚ 2011 A. The break-even point in units can be computed as Fixed Costs divided by the contribution margin per unit. On the other hand‚ the break-even point in pesos can be computed as Fixed Costs divided by the contribution margin ratio. Using the profit equation π = TR – TC; where π = operating profit‚ TR = Total Revenue and TC = Total Cost‚ derive the break-even formulas. B. From the profit equation π = TR – TC‚ derive the formula for the
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250 units of laser printers per day‚ the older plant can produce 200 units per day. Variable cost per unit in Ogden is $110‚00; in Sandy variable cost is $15 higher. Selling price for the printer is $320‚00. Based on the data mentioned above the contribution margin per unit of normal production is $210‚00 in Ogden and $195‚00 in Sandy. Fixed costs per unit based on normal capacity are $70‚00 and $39‚00; total fixed cost is $4 200 000 for the Ogden plant and $1 872 000 for Sandy. In the circumstance
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Laticia G. Josiah Finance 540 “Contribution Margin and Break Even Analysis” Simulation Prof. Richard Franchetti April 6‚ 2005 The ultimate goal of any firm is to generate profit. Steve Lefever states that there are two ways to generate profit: you can simply go from day to day and hope it happens or‚ you can identify the primary “drivers” of profitability and manage them. It is important for managers to manage how the sales dollars flow through the firm. Break-even analysis can help
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Managerial Accounting and Control Decision Making: Relevant Costs and Benefits Case 14-62 Submited to: Prof. Virgilio c. Avila Submitted by: Roy Kondoy Shella Faye Background of the Study Sportway Corporation Sportway is a wholesale distributor supplying a wide range of moderately priced sports equipment to large chain stores Products: 60% purchased‚ 40% manufactured The company has a Plastics Department that is currently manufacturing molded fishing tackle boxes Sportway
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The Han dynasty mitigated the harshest aspects of Qin governance but kept Qin’s system of imperial bureaucracy. As mentioned above‚ early Han emperors reduced taxes‚ provided financial relief for the poor‚ and relaxed legal penalties; the dynasty had nothing to gain from revoking the ghastly memories of Qin. Qin remained an anathema to Han scholars as well. The scholar-bureaucrat‚ Jia Yi‚ despite his praise towards Shihuangdi for unifying China‚ denounced his dynasty for imposing terror upon people
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Foxy Originals 1. Discuss the pros and cons to launching the Foxy brand in the United States. To determine the pros and cons‚ we conducted a SWOT analysis: S(trengths) – Foxy Originals has saturated the Canadian market‚ which presents an opportunity for growth. The two owners have extensive experience in designing jewelry‚ having done so since they were in high school. They’re good at what they do and have had time to perfect their trade. They also have a firm grasp of who their target
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Executive Summary Five Star Tools is a family owned manufacturing company that manufactures chisels and saws used by jewelers. They produce the tools utilizing a 3 step process. In the past two years the company has experienced significant growth and at times has not been able to meet order deadlines. Management has identified that they have a bottle neck in the coating and sharpening process. Overview The president of Five Star Tools‚ Maxfield Turner decided to meet with the vice president
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revenue hour is $28.70/hr Question 3 - Price per unit is $400/hr internal and $800/hr external - Intracompany contribution margin: $371.30/hr - Commercial contribution margin: $771.30/hr Assume STC will fully utilize their allowable hours. The next allowable hour will be a commercial hour; therefore we consider the contribution margin to be the commercial contribution margin of $771.30/hr. Question 4 Break-even occurs when revenue equals costs so we used the following equation:
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