that your production equals your sales in units‚ create a proforma income statement (contribution method). What is the total profit? 6. What price results in breakeven ($0 profit) if you sold and produced 12‚000 CMI pads? 7. At a price of $400‚ how many units must be sold to breakeven at the 9‚000 unit production rate? 8. For question #7 above‚ at a price of $400‚ what is the market share required to
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Question One (25 marks) Based on module 7 – Budgeting Retail outlets purchase snowboards from Slopes Ltd.‚ throughout the year. However‚ in anticipation of late summer and early autumn purchases‚ outlets ramp up inventories from January through May. Outlets are billed when boards are ordered. Invoices are payable within 60 days. From past experience‚ Slopes’ accountant projects 20% of invoices are paid in the month invoiced‚ 50% are paid in the following month‚ and 30% of invoices are paid
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1. Demand Curve for Oligopolistic Market. Above the kink‚ demand is relatively elastic because all other firms’ prices remain unchanged. Below the kink‚ demand is relatively inelastic because all other firms will introduce a similar price cut‚ eventually leading to a price war. Therefore‚ the best option for the oligopolist is to produce at point E which is the equilibrium point and the kink point. This is a theoretical model proposed in 1947‚ which has failed to receive conclusive evidence for
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department. 2. From profit‚ in Lakeside Hospital‚ dialysis unit used to be a profitable unit‚ since it decreased its capacity by 50 percent‚ we have to calculate the breakeven‚ overhead‚ and total costs and revenue to see whether it’s still reasonable to continue operating the dialysis unit. Key numbers and method of analysis: 1. Breakeven: We suppose the water usage‚ medical supplies‚ and purchased lab services as variable cost; employee’s salaries‚ benefits‚ and equipment depreciation as fixed cost
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the United States. Florida and Alaska are also both peninsulas‚ a land that is almost completely surrounded by water but connected to the mainland. Both of these places have many fun things to do. In Alaska you can ski‚ ice skate‚ play ice hockey‚ snowboard‚ or go sledding because most of the year there is snow on the ground. In Florida you can go to the beach‚ go surfing‚ play volleyball‚ go to the boardwalk‚ or go to Disney
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(TBC) method‚ however the Activity Based Costing (ABC) may give more insight to management and helpful in analyzing the per unit costing of the different types of frames and pinpoint the area of improvement. Also the management wants to know the Breakeven point caused by the potential increase of fixed cost by $5‚000 and increase in direct cost by 10%. A1: Costing Method Traditional Based Costing Method (TBC)- The allocation of manufacturing overhead (indirect manufacturing costs) to products on
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PROBLEM STATEMENT Tyler Pet Foods‚ Inc. met with representatives of Marketing Ventures Unlimited to discuss possible entry into the household dog food market in the Boston Massachusetts metropolitan area. The meeting raised the question: "Is there a place for Show Circuit in the dog food market?" COURSES OF ACTION After the meeting‚ Tyler Pet Foods had several unanswered questions: 1. Was the market itself adequately defined and segmented? 2. What position would Show Circuit seek in the market? Should
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The breakeven calculation In the World Wide Drugs case‚ the given figures are summarized as follow: Monthly Sales: $96/ monthly treatment‚ of which $66 is paid to WWD and $30 is paid to the doctor Variable Cost: $26.40/ treatment‚ of which $9.60 is for the potential product litigation costs. Fixed Cost: $24‚000‚000 The breakeven point (in units of monthly treatments) when WWD’s variable costs include $9.60 estimate is calculated as follow (all answers are rounded to 2 decimal places): 0 = $66.00x
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Final Project: Analyzing Financial Statements Erin Magoon - Resource: Appendix A - Review the financial statements in Appendix D. - Calculate the following: Current ratio‚ long-term solvency ratio‚ contribution ratio‚ programs and expense ratio‚ general and management and expense ratio‚ fund-raising and expense ratio‚ and revenue and expense ratio for the years 2003 and 2004. Current ratio 2003 – 82‚058/93‚975 = 0.87 2004 – 302‚902/337‚033 = 0.90 Long-term solvency ratio 2003 – 359‚863/259
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CASH FLOW DIRECT/INDIRECT 1. Given the following information and using the indirect method prepare the Cash Flows from Operating Activities section of the statement of cash flows. End of Year Beginning of Year Change Cash 23‚500 37‚400 (13‚900) Accounts receivable (net)
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