distinguish the variable costs and fixed costs‚ we now can construct the contribution margin Income Statement for SDS at its March level‚ assuming 205 hours for Intercompany usage-Question 3 Income Statement Revenues: -Intracompany $82‚000 -Commercial 110‚400 Total Revenues 192‚400 Variable Expenses: -Power 1‚697 -Hourly Personnel 8‚147 Subtotal Variable Expenses 9‚844 Contribution Margin 182‚556 Fixed Expenses: -Rent 8‚000 -Custodial Services
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2) Under what conditions should a buying division be forced to buy from an internal supplier? Under what conditions should a selling division be forced to sell to an internal division‚ rather than to outside customer? (20m) Frequently buying division will be required to buy from within the company as long as the selling division can provide goods of comparable quality and prices. Based on the situation‚ for example‚ suppose the window division can acquire the same component from within the company
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CASE STUDY SCOPING – CRADDOCK CUP Background: The Craddock Cup is a regional soccer tournament held by the Craddock Youth Soccer League (CYSL) and managed by Joe Rivaldo every year. The cup brings in around 32 premier high school soccer teams (both boys and girls teams) from throughout the region to compete. Each year the cup is considered a great success by players‚ their families and the local community and is now widely considered as the premier tournament for high school soccer players. Over
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! CHAPTER 19! Sample Exam Questions! 1. The four cost categories in a cost of quality program are! A. product design‚ process design‚ internal success‚ and external success.! B. prevention‚ appraisal‚ internal failure‚ and external failure.! C. design‚ conformance‚ control‚ and process.! D. design‚ process specification‚ on-time delivery‚ and customer satisfaction.! ! 2. Which of the following is not a non-financial performance measure for customer satisfaction?! A. Number of defective units
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DXX I NDIAN I NSTITUTE A HMEDABAD OF M ANAGEMENT IIMA/QM-xxx Merton Trucks Case Note Abstract We discuss Merton Trucks [Dhe90a] as a case to introduce linear programming in the MBA program. This case adapted from Sherman Motor Company case‚ was used to introduce Linear Programming formulations as well as duality. Refer to the teaching note [Dhe90b]. Our approach differs from the approach suggested by Dhebar [Dhe90b]. First‚ our audience consists pre-dominantly of engineers with not too much work
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High-Low Method The controller of PATAY Hospital would like to come up with a cost formula that links admitting department cost to the number of patients admitted during a month. The admitting department’s costs and the number of patients admitted during the past nine months follow: Month Number of Patients Admitted Admitting Department’s Cost April 18 P 15‚ 600 May 19 P 15‚ 200 June 17 P 13‚ 700 July 15 P 14‚ 600 August 15 P 14‚ 300 September 11 P 13‚ 200 October 11 P 12‚ 800 November
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assumptions in order to be relevant. It often assumes that the sales price‚ fixed costs and variable cost per unit are constant. Some applications are cost behavior patters‚ estimating cost behaviors‚ a modified income statement‚ an expanded contribution margin‚ multiple products or services
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vehicles will be used by a larger pool of different drivers. Parking fee per car per year was also higher than expected (25% more) and fuel bill were 10% higher than planned. Because these were variable cost‚ they would bring down the company’s contribution margin. However‚ as the fixed costs seemed to be stable in September‚ it would not hurt the earning that much. The good news was that the actual number of registrations was much larger than expected which showed a good sign for the future of Zip Car
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1546 | 1485 | 1697 | Operations: hourly personnel | 7896 | 7584 | 8664 | Total Variable Cost | 9442 | 9069 | 10361 | Total Revenue Hours | 329 | 316 | 361 | Variable Costs per revenue hour | $ 28.70 | $ 28.70 | $ 28.70 | The “contribution margin” income statement for SDS therefore is‚ Break even analysis: Based on the assumptions above‚ the number of commercial revenue hours needed to break even is as follows: (205 * 400 + x *800) -28.7 * (205+x) – 212939=0 82000
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DUE: OCTOBER 16‚ 2014 CASE PROBLEM The Southern Textile Mill produces 5 different fabrics. Each fabric can be woven on one or more of the mill’s 38 looms. The sales department’s forecast of demand for the next month is shown in Table 1 along with data on the selling price per yard‚ variable cost per yard‚ and purchase price per yard. The mill operates 24 hours a day and is scheduled for 30 days during the coming month. Fabric Demand Selling Price Variable Cost Purchase Price (yards)
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