Scenario Analysis ------------------------------------------------- Year | ------------------------------------------------- Scenario 1 | ------------------------------------------------- Scenario 2 | ------------------------------------------------- Scenario 3 | ------------------------------------------------- | ------------------------------------------------- 15% Better | ------------------------------------------------- Stated Forecast | -------------------------------------------------
Premium Net present value Cash flow Costs
BSB60407 Advanced Diploma of Management BSB60507 Advanced Diploma of Marketing Resource Management Management 2 Financial BSBFIM601A Manage Finances ii This workbook has been designed for use in conjunction with information and materials provided at lecture and tutorial sessions. Students should attend all timetabled sessions so they can obtain all subject information. Students should read and understand all materials provided. Information that is available in digital form is not included in
Premium Variable cost Contribution margin Fixed cost
Case Study Report- Ford Motor Introduction Ford Motor Company (Ford) is an American multinational corporation which produces cars and trucks. The automaker was founded by Henry Ford and incorporated on June 16‚ 1903. Ford is the second largest automaker in the U.S. and the fifth-largest in the world based on annual vehicle sales in 2010. Ford introduced methods for large-scale manufacturing of cars and large-scale management of an industrial workforce‚ using elaborately engineered manufacturing
Premium Ford Motor Company Contribution margin Income statement
the real cause of the favorable overall variance. The success and purpose of variance analysis is reliant on how quickly and effectively it is able to aid in undertaking corrective actions. In addition to the lack of outputs that could lead to decision-making capabilities‚ the total favorable variance of $71‚700 includes a favorable variance of $117‚700 calculated as the difference between the budgeted income at actual volume under the revised plan and the budgeted income at the forecasted volume
Premium Budget Variance Contribution margin
($400/hour IntCo.) $82‚000 Commercial Sales ($800/hour Comm.) $110‚400 Total Sales Revenue $192‚400 Variable Costs: Power ($4.70/hour) $(1‚612.10) Hourly Personnel Wages ($24/hour) $(8‚232.00) Total Varible Cost $(9‚844.10) Contribution Margin $182‚555.90 Fixed Costs: Rent $(8‚000)
Premium Variable cost Fixed cost Costs
25‚000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of $50 per unit‚ and Product Y has a contribution margin of $64 per unit. Product X requires 5 hours of machine time‚ and Product Y requires 8 hours of machine time. If Gamble Company wants to dedicate 80 percent of its available machine time to the product that provides the highest contribution margin per unit of the
Premium Contribution margin Management accounting Variable cost
of dollars) = Fixed cost/contribution margin ratio $7‚287.03 $7‚620.20 $11‚655.34 Break-even point in units (sale ticket) = Break-even point in dollar/Sales per tickets 4535 5000 7506 Margin of Safety = (Budgeted sales - Break-even point sales)/Budgeted sales 15.10% 5.95% -8.82% (Table 1. All the related data can be found in exhibit a.) Both the break-even point in dollars and the break-even point in units increase a lot‚ and the margin of safety drops down to negative
Premium Variable cost Costs Contribution margin
ISSN 1940-204X Bridgestone Behavioral Health Center: Cost-Volume-Profit (CVP) Analysis for Planning and Control A. Ronald Kucic University of Denver IntroductIon Thomas: In reality‚ securing some outside assistance seems James E. Sorensen University of Denver Lisa M. Victoravich University of Denver 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
Premium Contribution margin Management accounting Variable cost
indirect labor but not indirect materials. 2. A variable cost is a cost whose cost per unit varies as the activity level rises and falls. A. True B. False 3. The traditional format income statement is used as an internal planning and decision-making tool. Its emphasis on cost behavior aids cost-volume-profit analysis‚ management performance appraisals‚ and budgeting. A. True B. False 4. The cost of leasing production equipment is classified as:
Premium Costs Variable cost Fixed cost
Curled Metal Inc.—Finding the Perfect Price Brief Description of Company and the Situation Curled Metal Inc. (CMI) specializes in selling metal-based products to various markets. With over $55 million in annual sales (FY 2007‚ Exhibit A)‚ they’ve managed to capture 80% of the automobile industry’s market share by developing and selling a highly specialized product‚ Slip Seal‚ designed just for auto manufacturers. They’ve seen a recent slip in sales (a loss of nearly 10% from 2006 to 2007‚ Exhibit
Premium Variable cost Total cost Costs