the contribution margin per haircut. Assume that the barbers’ compensation is a fixed cost. Show calculations to support your answer. Contribution margin is the marginal income per unit sold. The formula is the per unit sales price minus the variable cost per unit. For Andre‚ with a sales price of $12.00 and a variable cost of $0.40 per cut‚ his Contribution Margin (income per cut) is $11.60: unit sales price $ 12.00 - variable cost $ 0.40 shampoo = cont margin $
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FIVE STAR TOOLS Five Star Tools is a small family-owned firm that manufactures diamond-coated cutting tools (chisels and saws) used by jewelers. Production involves three major processes. First‚ steel “blanks” (tools without the diamond coating) are cut to size. Second‚ the blanks are sent to a chemical bath that prepares the tools for the coating process. In the third major process‚ the blanks are coated with diamond chips in a proprietary process that simultaneously coats and sharpens the blade
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both analysis were not based on the basis of the factors that caused the cost to be incurred unlike Activity based Costing (ABC) that traces overhead costs directly to products‚ processes‚ services or customers and helps managers to make the right decisions regarding
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method Prepare a contribution format income statement Prepare a traditional format income statement Schedule of cost of goods sold Compute the company’s predetermined overhead rate. Unit product costs Prepare a Schedule of Cost of Goods Manufactured Prepare a Schedule of Cost of Goods Sold Weighted Average method Construct a cost reconciliation Compute the following items: a. Unit contribution margin. b. Contribution margin ratio. c. Break-even in dollar sales. d. Margin of safety percentage
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Bridgestone Behavioral Health Center: Cost-Volume-Profit (CVP) Analysis INTRODUCTION In June of the current year Dr. Thomas Russell‚ Executive Director‚ and Susan Smyth‚ Accountant‚ at the Bridgestone Behavioral Health Center were discussing the necessity of gaining a better understanding of how to monitor the Center’s operating and financial performance. Located in Cleveland‚ Ohio‚ Bridgestone provides prevention‚ intervention‚ and treatment services for individuals with substance abuse problems
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|Course Code |MBA 625 |Course Name |Corporate Finance | |Date | |Due date |Week 4 | |Maximum Marks |100 |Weight |20% | |Learning Outcomes |LO1‚ LO2 ‚LO3‚LO4‚LO5
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| Jen Poe | | | | | | | BUS657 Corporate Managerial Finance | | | | | | | | | | | | | Week #5 | | | | | | | Assignment - Chapter 22 Mini - Case | | | | | | | | | | | | | | | | | | | 1) Calculate BB’s current cash conversion cycle. | | | | | | | | | | | | | BB’s Ratios: | | | | | | | Average Age of Inventory | $842‚020 / [(0.57 *$43‚803‚000) /365] | | 12.31 | days | | Average Collection Period | $3‚240‚222/($43
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Contribution Margin HCA311: Health Care Financing & Information Systems Instructor Guisinger Contribution Margin “is a cost accounting concept that allows a company to determine the profitability of individual products” (Investopedia‚ 2013). In order to determine the contribution margin‚ one must take the revenues and subtract it from the variable cost which would look like this: Revenues – Variable Cost. “Fixed costs are costs that do not vary in total when activity levels (or volume)
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Cycle = OC − APP = 106 days − 35 days = 71 days (b) Daily Cash Operating Expenditure = Total outlays ÷ 365 days = $3‚500‚000 ÷ 365 = $9‚589 Resources needed = Daily Expenditure × CCC = $9‚589 × 71 = $680‚819 356 Part 5 Short-Term Financial Decisions = (Daily expenditure × reduction in CC) × financing rate = ($9‚589 × 20) × 0.14 = $26‚849 (c) Additional profit P14-3. LG 2: Multiple Changes in Cash Conversion Cycle Intermediate (a) AAI OC = = = = 365 ÷ 6 times inventory = 61 days AAI + ACP
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Managerial Accounting Overview BA 115 Management Accounting Measures‚ analyzes‚ and reports financial and non financial information non-financial that helps managers make decisions to fulfill the goals of an organization organization. Activity IFRS/IAS-based Financial Reports Generally‚ cannot be used for the day-to-day d t d goals of the managers. Financial vs Managerial Acctg MANAGERIAL Primary users Focus and emphasis Rules of measurement and reporting Level of detail Managers
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