Assignment #1: Caribbean Intern Café Date: November 14‚ 2012 1. There are many issues that Mr. Grant should consider before proceeding with the CIC. There are several things that Mr. Grant should examine before even looking at the projections given to him. Total capital is $2‚250‚000‚ $1‚000‚000 in investments and $1‚250‚000 in the form of a long-term loan. $1‚573‚000 is immediately spent leaving $677‚000. If he has no customers‚ he can afford to remain open for 3 months. As well‚ they
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CHAPTERS 6-12 Use the following to answer question 1: Wright Corporation’s contribution format income statement for last month appears below. Sales $45‚000 Less variable expenses 27‚000 Contribution margin 18‚000 Less fixed expenses 12‚000 Net income $6‚000 There were no beginning or ending inventories. The company produced and sold 3‚000 units during the month. Ch. 9 1. If sales decrease by 500 units by next month‚ by how much would fixed expenses have to be reduced to maintain the current
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categorize retailers are the Census Bureau‚ Number of Outlets‚ Margin versus Turnover‚ Location and Size. The number of outlets include chain stores‚ the standard stock list‚ the optimal stock list‚ channel captain‚ and private label branding. Margin versus turnover included gross margin percentage‚ gross margin‚ operating expenses‚ inventory turnover‚ high-performance retailers‚ low margin/low turnover‚ low margin/high turnover‚ high margin/low turnover‚ and high
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example suppose that you manufacture regular and premium golf carts. The selling price‚ variable costs and manufacturing times are as follows: Regular Premium SALES PRICE $ 8‚000 $ 10‚000 VARIABLE COST 5‚600 6‚500 CONTRIBUTION MARGIN $ 2‚400 $ 3‚500 Assembly hours 20 50 Inspect and Test 5.0 2.5 Your company currently has 10‚000 hours available for assembly and 1‚200 hours for inspection and testing. There
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50% more space and selling staff. This resulted in a five-year lease as well as a year to complete the expensive renovations. They also made some changes in product offerings and offered more sales potential at the cost of minor reductions in margins. Within the year that it took to complete the renovations the industry started showing major changes toward internet based jewelry
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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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with Wu. Action Plan 1. To conduct a cost analysis to determine the main cost activities for SDS; this will include fixed cost and variable cost. 2. To conduct a revenue analysis to determine cost per revenue. 3. To construct a detailed Contribution Margin Income Statement for SDS. 4. To present a Break-Even analysis 5. To use What-If analysis to show the impact of increasing and decreasing commercial prices and promotion. 6. To make specific recommendation based on quantitative data to Flores
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$550 + $825 + $420 + $275 = $2‚070 Total Variable Cost = $2‚070 x $3‚000 = $6‚210‚000.00 Unit Contribution Margin = Sales – Variable Cost = $4‚350 – $2‚070 = $2‚280 ii. Contribution Margin Ratio = Total Variable Cost Total Sales = $2‚280 x 3‚000 $4‚350 x 3‚000 = 0.524137 iii. Break even volume in units = Total Fixed Cost Unit Contribution Margin = $4‚290‚000 $2‚280 = 1‚881.578 = 1‚882 units iv. Break even in sales dollar =break even
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The University of Business and International Studies Geneva‚ Switzerland. COURSE TITLE: ACCOUNTING FOR DECISION MAKING Student : NGUYEN THANH DAM COURSE CODE: Accounting for decision making – final assigment Lecturer: Pham Quang Huy Page 1 ACCT 601 UBIS INTAKE 2012 - 2013 The University of Business and International Studies Geneva‚ Switzerland. PROBLEM Part 1: Optional Section In this part‚ the learners have to choose four of eight questions for answering. If you give
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JanMar Case Study Case Analysis United States Paint Industry The US paint industry is divided into three broad segments: architectural coatings‚ original equipment manufacturing (OEM) coatings‚ and special-purpose lacquers. The paint industry is a maturing industry. In 2004‚ sales were estimated to be slightly over $16billion and an average growth of 1-2% per year. Architectural Paint Coatings Industry The industry estimates that architectural coatings and sundries (brushes‚ paint removers
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