EXECUTIVE SUMMARY Boston Creamery‚ Inc‚ is an ice cream company that manufactures and distributes ice cream to wholesalers and retailers. In 1973‚ the company had installed a new financial planning and control system that compares budgeted results against actual results and be able to highlight things that needed corrective actions or commend things that resulted in a favorable overall variance. This year‚ the division has a favorable operating income variance of $71‚700. Highlights: · Jim
Premium Variable cost Variance Marketing
1. Discuss the pros and cons to launching the foxy brand in the United States. Pros | Cons | U.S. market is 10 times larger than Canada. With right business model and price‚ foxy would gain additional revenue and profit. The brand seeks great opportunity to further develop the business‚ enhance product design as well as company’s brand image. | U.S market is different in terms of tastes for jewellery. American preferred the latest trend regardless of the product’s origin. It might take foxy
Premium Variable cost Costs Fixed cost
Analysis From Wikipedia‚ the free encyclopedia Jump to: navigation‚ search Cost-Volume-Profit Analysis (CVP)‚ in managerial economics is a form of cost accounting. It is a simplified model‚ useful for elementary instruction and for short-run decisions. Cost-volume-profit (CVP) analysis expands the use of information provided by breakeven analysis. A critical part of CVP analysis is the point where total revenues equal total costs (both fixed and variable costs). At this breakeven point (BEP)
Premium Management accounting Costs Variable cost
Sales | $8‚583 | $8‚102 | $10‚711 | Variable Costs | | | | Cost of Goods Sold | $4‚326 | $4‚132 | $5‚570 | Commissions | $429 | $405 | $536 | Total Variable Costs | $4‚755 | $4‚537 | $6‚106 | Contribution Margin | $3‚828 | $3‚565 | $4‚605 | | | | | Fixed Costs | | | | Salaries | $2‚021 | $2‚081 | $3‚215 | Advertising | $254 | $250 | $257 | Administrative Expenses | $418 | $425 | $435 |
Premium Variable cost Costs Fixed cost
week and have no setup time when switching between products. Market demand for each product is 80 units per week. In the questions that follow‚ the traditional method refers to maximizing the contribution margin per unit for each product‚ and the bottleneck method refers to maximizing the contribution margin per minute at the bottleneck for each product. Table 7.5 A company makes four products that have the following characteristics: Product A sells for $50 but needs $10 of materials and $15 of
Premium Project management Harshad number Working time
signal with financial leverage or taxes. Computing operating leverage would be easy if the proportion of fixed and variable costs could be known with certainty. Consider a stylized example: Operating leverage is computed by dividing the contribution margin (revenues less variable costs) by the operating income. In this case‚ operating leverage is 1.50 (300/200). So‚ a 10% increase in revenues should yield a 15% increase in operating income (10% * 1.5). As seen above‚ a 20% increase in sales yielded
Premium Variable cost Operating leverage Management accounting
Leuven : Katholieke Univ. Leuven‚ Faculty of Economics and Applied Economics. McGrawHill‚ 2011. Financial Analysis & Decision Making. New York: McGrawhill Companies Inc. McLaney‚ P. A. a. E.‚ 2012. Accounting and Finance for Non-Specialists. 8th ed. London: Pearson Education Limited. Milis‚ K.‚ 2008. Evaluation of the applicability of investment appraisal techniques. DEPARTMENT OF DECISION SCIENCES AND INFORMATION MANAGEMENT (KBI). Moose‚ C. J.‚ 1997. Budgeting. s.l.:Rourke Publishing Group. Peter Atrill
Premium Variable cost Management accounting Net present value
Variable Cost = 148+2321+40+(1372+94)*1.05 +32 = 4080.3 k Old Contribution = 9.41*750-4007 = 3050.5 k New Contribution = 8.64*1000-4080.3 = 4559.7 k Since the contribution margin is higher at 8.64$ therefore the company should decrease price. * 4. Answer 3 Profit is dependent on Total Contribution‚ because a product with higher contribution margin but lower sales won’t be able to give profits to the company. Hence‚ Actual total contribution decides profitability of the product. Thus‚ Product 101 is
Premium Variable cost Costs Contribution margin
Analyzing Flare Fragrances Co.‚ Inc. Joseph J Fortunato CR 504 Marketing Management May‚ 31‚ 2011 About Flare Fragrances: Flare Fragrances Company‚ a small women’s perfume manufacturer‚ was started in 1955. Since inception‚ Flare has grown to be the #4 player in the U.S. women’s fragrance market. For 2008 EOY estimates were $221 million dollars up 2% over 2007 sales. In 1975 Flare introduced the brand “Loveliest” which was their sole focus until 1996 when they introduced
Premium Contribution margin Variable cost Marketing
companies‚ the annual report must be made part of the public record. (Brian ‚2008) Management Accounting: managers to make decisions concerning the day-to-day operations of a business use Management or managerial accounting. It is based not on past performance‚ but on current and future trends‚ which does not allow for exact numbers. Because managers often have to make operation decisions in a short period of time in a fluctuating
Premium Management accounting Variable cost Income statement