000 Formula : Revenue = Units Sold * Unit price Contribution Margin = Revenue – All Variable Cost Contribution Margin Ratio = Contribution Margin/Selling Price Break Even Points in Units = (Total Fixed Costs + Target Profit )/Contribution Margin Break Even Points in Sales = (Total Fixed Costs + Target Profit )/Contribution Margin Ratio Margin of Safety = Revenue - Break Even Points in Sales Degree of Operating Leverage = Contribution Margin/Net Income Net Income = Revenue – Total Variable
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Chapter 9: Budgeting Discussion Questions 9.1 State the different types of budgets that may be prepared. Different budgets include: sales or fees budget; operating expenses budget; production and inventory budgets; budgeted income; cash budget; budgeted balance sheet; and the capital budget. P9.7 Preparation of receipts from debtors schedule and cash budget Ken Martin‚ manager of Lonnie Car Repairers‚ has requested that you prepare a cash budget for the months of December and
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Prestige Telephone Company Scott Johnson‚ Nicole Phillips‚ Ashton Shuler‚ & Brandy Watts February 25th‚ 2014 Group Contributions Responded to all texts‚ discussion boards‚ and emails Participated in online chat and conference call Answered question 3 Provided the framework of how the case would be set up Suggested new ideas for later projects on how to discuss our topic Responded to all texts‚ discussion boards‚ and emails Participated in online chat and conference call Answered
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INC. CVP Income Statement For the Quarter Ended March 31‚ 2010 Sales $2‚200‚000 Variable costs 1‚076‚000 Contribution Margin 1‚124‚000 Fixed costs 583‚000 Net income $541‚000 Question 2 - Solution BRUNO MANUFACTURING INC. CVP Income Statement For the Quarter Ended March 31‚ 2010 Sales $2‚200‚000 Variable costs ($920‚000 + $70‚000 + $86‚000) 1‚076‚000 Contribution Margin 1‚124‚000 Fixed costs ($440‚000 + $45‚000 + $98‚000) 583‚000 Net income $541‚000 Question 3 For Dousmann
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case. The first is a decision on what research should be conducted by Manson and Associates to allow Larry Brownlow to estimate the feasibility of a Coors beer distributorship for a two-county area in Delaware. This issue is evident‚ even stressed‚ throughout the case. The second issue is a decision on whether or not the distributorship is feasible or‚ in other words‚ a go/no-go decision by Brownlow regarding his application. This issue is largely implicit in the case. Decision-Making Process The
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what is their total contribution each month at current prices? ($19 - 10) * 5‚470 = $49‚230 [+/- $1‚477] Total contribution = Unit Contribution * units sold QUESTION 3: What will be EasyFind’s new price if they choose to implement the price decrease? $19 * (1 - 20%) = $15.20 [+/- $0.46] New Price = Old Price * (1 - Price Reduction %) or New Price = Old Price - Old Price * Price Reduction% QUESTION 4: If EasyFind’s variable costs are $10 per dozen‚ what is the contribution per dozen balls at
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The break even point in units and sales have increased form 2003 to 2004 to 2006 due to the greater increase in fixed costs especially from expanding the business as well as insufficient average sales and unit sales to compensate these changes. The margin of safety has decreased over the years due to the increase in expenses and the lack of gross profit to compensate. Calculations: | | 2003 | 2004 |2006
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Baldwin Bicycle Company Baldwin Bicycle Company is its own independent bicycle shop that has been in business for almost 40 years. Last year Baldwin had sold 98‚791 bikes which accounted for nearly $10 million in sales for 1982. Suzanne Lesiter is the marketing Vice President of Baldwin and has just been offered a proposition from Karl Knott‚ a buyer from Hi-Valu to possibly start producing bikes for them. Baldwin had never conducted any business with a chain department such as Hi-Valu since it was
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Dateesha Blakely PROC 5830 22 April 2011 Wk 7 Case 2 Case of the Pricing Predicament Case Assignment Calibrated manufacturing makes an electronic component that is in great demand. The component sells for $20 each. Calibrated’s current capacity is 10‚000 units per week. For the last few months‚ however‚ the company has been receiving new orders at a rate of 14‚000 units per week‚ and now has a substantial backlog. The company expects this order rate to continue‚ if it maintains price
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$836 $81 3. Use the data you collected in Requirement 2 to calculate each segment’s sales margin. Interpret your results. Sales Margin = Operating Income / Sales Painting Stores Group: Sales Margin= 862 / 5410 = 15.9% Consumer Group: Sales Margin = 217 / 1322 = 16.4% Global Finishes Group: Sales Margin = 147 / 1961 = 7.5% Latin America Coatings Group: Sales Margin = 81 / 836 = 9.7% 4. Use the data you collected in Question 2 to calculate each segment’s capital turnover
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