Grear Rafting Company is the dream business of Ms. Grear‚ and has been in operation for one year‚ and according to the income statement she has provided‚ she is losing money. Because of her dream to maintain this rafting business‚ she has come to us for help to get her out of the red. In order to do this‚ we need to explain variable and fixed costs‚ period and product costs‚ and rewrite Grear Rafting’s income statement. Grear Rafting’s income statements is provided below. Grear Rafting Company
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Breakeven analysis is a powerful management tool‚ and one that is critical in planning‚ decision-making‚ and expense control. Breakeven analysis can be invaluable in determining whether to buy or lease‚ expand into a new area‚ build a new plant‚ and many other such considerations. Breakeven analysis can also show the impact on your business of changing your price structure. As the price goes down (and so your gross margin goes down)‚ breakeven shoots up - usually very rapidly. Breakeven analysis
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Technology Helps Starbucks Find New Ways to Compete 1. Analyze Starbucks using the competitive forces and value chain models. The environment in which the specialty coffee industry had to compete during the 2008 was made up of cheaper fast food chain and global economic downturn. Compare with McDonald’s and Dunkin’ Donuts‚ Starbucks offers a unique experience: high-end specialty coffees and beverages‚ friendly and knowledgeable servers‚ and customer-friendly coffee shops. However more and more
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5‚316 6‚897 Variable Cost per sales ticket 0.9 0.9 0.9 Breakeven Qty 4‚535 5‚001 7‚506 Breakeven Sales = Breakeven Qty x average sales ticket price Breakeven Sales 7‚287 7‚621 11‚655 Margin of Safety = Sales in excess of the breakeven sales Sales 8‚583 8‚102 10‚711 Margin of Safety (sales dollar) 1‚296 481 (944) Margin of Safety (sales tickets) 806 315 (609) The major cause of the increase in breakeven quantities and sales‚ and the decrease of margin of safety is the
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Snowboarding Have you ever done something that changed your life? Well that’s what this story is about. Im going to tell you about the first time i went snowboarding and how it changed my life. “Where are we going?” i exclaimed. “You will see” my mom said with a huge smile on her face while glancing at my dad. We started to slow down in front of a big hotel with a mountain behind it. “Wooow are we staying there?” “we will see i need to check in first to see if we are staying in here or a cabin
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In the winter of sixth grade me and my family had gone on a ski trip at MT. Hood. So far everything was going great I was finally getting the hang of snowboarding because it was my first year. Snowboarding was a little scary but I was very scared of the ski lift I don’t really know why but i was very scared to get off of it. Later that day i did not know that my fear of ski lifts was about to get a way lot worse. I was riding on the ski lift when all of the sudden I noticed my hair was stuck. The
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Question4: What closing time should Citywide Spirits Shoppe choose to maximize profits? Through the Attachment: (Evening time) Contribution Margin = average purchase revenue-average purchase cost = $30.52-$23.25 = $7.27 per customer per purchase Average numbers of customer: (Attachment 2) close time averge customers Time Total customer 10pm 10.18 10pm~11pm 12 11pm 10.16 10pm~12pm 21 12pm 10.08 10pm~1am 27 1am 9.71 10pm~2am 32 2am 9.4 10pm~3am 36 3am 9.06 10pm~4am
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Ying Wang and Bohan Li Question 1 Breakeven is a point at which a company covers all its costs and its profit is zero. After reviewing Hallstead Jewelers Income Statement‚ operational statistics‚ and table 2 and 3‚ for fiscal years 2003‚ 2004‚ and 2006‚ we can see a slight change in the breakeven unit and dollar amounts between the fiscal year of 2003 when compared to 2004. At the same time we also examine a major change when comparing the breakeven points of the fiscal year 2004 to 2006. This
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seven-years old. 2. Mark Thomas‚ assistant director of the Abbington Youth Center‚ instructs the program directors with his breakeven analysis. He calculated the following results by using average method: * Each student contributed $4‚348 to fixed costs * 115 students are the breakeven point 3. The current Abbington’s programs enrollment is exactly at breakeven‚ so Mr. Thomas encourages the program directors to expand the size of their programs to increase margin. However‚ they come
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Strengths St. Marseille recognized the underserved market for modern skateboarders. Used Connies retail business license to start a test business. Connie has experience in running a business. St. Marseille is experienced in skateboards and snowboards because of his passion for the sport. St. Marseille kept the business small to keep customer service high and to be able to react quicker to competition. Offered snowboarding equipment before local ski hills allowed snowboarders on the slopes
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