Section 1 (Strategy)-Page 37‚38‚39 QUSETION 1 Average monthly productivity (units/hour) for the month of: |MONTHS |PRODUCTIVITY | |January |2300 / (325*3) = 2.36 | |February |1800/ (200*5) = 1.80 | |March |2800/ (400*4) = 1.75 | |April |3000/ (320*4) = 2.34 | Average Monthly Productivity= (2.36+1.80+1.75+2.34)/4 = 2.06 QUESTION 2 Productivity = sales
Premium Productivity
Total Fixed Cost $3‚250 $3‚353 $5‚011 Breakeven point in number of sales tickets Breakeven Point = Total Fixed Cost / (Contribution Margin/ Units) 2003 = $3250 / ($3828/5341) = 4535 2004 = $3353 / ($3565/5316) = 5000 2006 = $5011 / ($4605/6897) = 7505 Breakeven point in sales dollars 2003 = breakeven point in units* price per unit = 4535*$1607=$7287745 2004 = 5000*$1524=$7620000 2006 = 7505*$1553=$11655265 Margin of safety in % 2003 = (Budgeted Sales - Breakeven Point in Dollars)/ Budgeted Sales =
Premium Variable cost Costs Fixed cost
down a ledge on a skateboard. Amy then goes on to tell us she even traveled to South Africa‚ where she put shoes on many children’s feet‚ that way they had the chance to go to school. Amy talks about how she couldn’t find a pair of good feet to snowboard with so she decided to make her own. She shows us the pair of feet she made and how realistic they look. The PowerPoint in Amy’s presentation give’s the audience a real-life experience with her story. With the pictures the audience gets to connect
Premium Meningitis Motivation
is $1‚421‚043.45; the net present value of all costs is $1‚411‚928.38‚ and the overall net present value is $9‚115.06. At a discount rate of 16 percent‚ the project breaks even in 4.83 years. 1. Reset the discount rate to 14 percent. Prepare a breakeven chart that compares the net present value of all benefits to the net present value of all costs. Figure 11 provides a suggested answer. The solution is also provided in the solution file’s ISQ2 BEP Chart worksheet. 2. If management stipulates
Premium Net present value Internal rate of return Rate of return
concern should be if this project will return a profit and when. The clearest way to identify the profit potential is to calculate the breakeven point; this is the point when the firm can expect to start earning a profit. Also in deciding to do this project calculating the various types of cash flow will be helpful in understanding how the project will progress. The Breakeven is usually the single most important deciding factor in determining to implement a project. Shane is worried about product demand
Premium Net present value
Drowling Mountain Case Analysis Overview: Drowling Mountain is a mountain resort that offers skiing‚ snowboard‚ and other snow activities in the state of New York. Located just 45 minutes away from Syracuse‚ New York. New York as a state has a total of 34 ski resorts. Drowling Mountains is a community centric resort‚ which clearly attempts to capture Syracuse’s population of 145‚170 people (2010). It also has the geographic location to be able to attract neighboring counties such as Onondaga
Premium Resort New York City Piste
truffles” is competing in—the hot and spicy food market‚ the chocolate candy market‚ the gift niche market‚ or other? Discuss (5 points) 2. Using the cost and financial information provided in Exhibits 2‚ 4‚ and 5 in the case‚ compute Cowgirl’s the breakeven sales revenue. Make reasonable assumptions and show your calculations in order to get credit. (Thinking question???) 10 points 1. Based on the information given by the case I think that the “hot and spicy truffles” are competing in the hot and spicy
Premium Marketing
operating losses‚ they are interested in the breakeven point calculated using CVP analysis. The breakeven point is the quantity of output sold at which total revenues equal total costs. There is neither a profit nor a loss at the breakeven point. To illustrate‚ assume a company sells 2‚000 units of its only product for $50 per unit‚ variable cost is $20 per unit‚ and fixed costs are $60‚000 per month. Given these conditions‚ the company is operating at the breakeven point: Revenues‚ 2‚000 × $50 Deduct:
Premium Variable cost Costs Contribution margin
C H A P T E R Process Strategy 7 9. DISCUSSION QUESTIONS 1. Process strategy is the organization’s approach to transforming resources into goods and services. 2. Product Beer Wedding invitations Automobiles Paper “Big Mac” Custom Homes Likely Process Product Focused/Continuous Process Focused/Job Shop Modular/Repetitive Product Focused/Continuous Modular/Repetitive Job Shop with components made in Product Focused and Modular facilities Modular/Repetitive Manufacturing firms in each
Premium Variable cost Fixed cost Costs
product. A company has broken even when its total sales or revenues equal its total expenses. At the breakeven point‚ no profit has been made‚ nor have any losses been incurred. This calculation is critical for any business owner‚ because the breakeven point is the lower limit of profit when determining margins. Defining Costs There are several types of costs to consider when conducting a breakeven analysis‚ Fixed costs: These are costs that are the same regardless of how many items sold. All
Premium Variable cost Costs Fixed cost