David Shim Case Study #2 A) What is the break-even point in passengers and revenues per month? Unit CM = $160 – $70= $90 Unit of Sales = 3‚150‚000 / $90= 35‚000 passengers Unit of Sales = 35‚000 x $160= $5‚600‚000 revenue B) What is the break-even point in number of passenger train cars per month? Unit of Sales = 35‚000/63= 555.5= 556 passenger cars C) If Springfield Express raises its average passenger fare
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Fixed Costs‚ Variable costs‚ and Break Even Point Elizabeth Gaud HSM /260 August 21‚ 2011 Stephanie Koontz Fixed Costs‚ Variable costs‚ and Break Even Point Exercise 10.1 Recompute fixed costs‚ variable costs‚ and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45‚000-meal contract with the City of Westchester? Answer:
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Inglis Library Case Questions 1. An activity measure is an allocation base in an activity-based costing system that uses a cost driver in an activity cost pool. A cost driver is an activity that drives the cost being allocated. The number of donated books being processed would be considered a cost driver as well as an activity measure. When it comes to salary‚ the financial aid fund‚ and the costs associated with the facility‚ the number of donated books being processed is not a cost driver in this
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Fee Setting Calculating Fixed Costs‚ Variable Costs‚ and Break-Even Point for a Program Proposed Seminar Budget 1. Conference room rental $175.00 $ 175.00 2. Audiovisual equipment Rental $75.00 3. 4 presenters @ $500 $2‚000.00 4. 45 workbooks @ $15
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Exercise 1: Sandy is considering moving from her apartment into a small house with a fenced yard. The apartment is noisy‚ and she has a difficult time studying. In addition‚ the fenced yard would be great for her dog. The distance from school is much the same from the house and from the apartment. The apartment costs $750 per month‚ and she has two months remaining on her lease. The lease cannot be broken‚ so Sandy must pay the last two months of rent whether she lives there or not. The rent
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ACT 2131 – QUIZ 1 solution MATRIX NO: ______________________ Answer all questions by using OMR form given 1. Managerial accounting: A. has its primary emphasis on the future. B. is required by regulatory bodies such as the SEC. C. focuses on the organization as a whole‚ rather than on the organization’s segments. D. Responses a‚ b‚ and c are all correct. 2. The plans of management are expressed formally in: A. the annual report to shareholders. B. Form 10-Q submitted
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How do the economies of scale affect break-even analysis? In the video on leverage‚ leverage is compared to a fulcrum in that you need just the right balance of leverage. That would seem to indicate that there is a point where the leverage is just right and that too little leverage may be just as harmful as too much leverage. Do you think this is true? The book discusses the difference between efficiency and effectiveness. Which one do you think is the most important in business and why? Answers:
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Name Course Current & Emerging Technology Running a start-up company is a fairly easy task to take with basic business administrative skills. The problem start to arise when the business is showing progress and growth and expansion is imminent. At this juncture of growth‚ two things unfold for the business. The business earns more profits due to customer base growth‚ also known as economies of scale and also the business may run into difficulties in the daily running‚ also known as diseconomy
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Data Tech‚ Inc. 2 Determine whether Jeff should give greater priority to a smaller facility with possibility of expansion or more into a larger facility immediately. According to Sliwinski and Gabryelczyk‚ facility management is a customer-oriented complete service‚ covering the comprehensive decision-making principles for optimum planning‚ usage and adaption of buildings
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Assignment 2 (CCMA) Solution 1: Refer attached excel sheets for all the four parts. The answers are marked in RED in Excel sheet. I) Enterprise value of digital = $3‚738‚409‚979.20 II) (a) Total value = 6‚753‚044‚375.39 (b) Value of control = $3‚014‚634‚396.19 III) Enterprise value of Compaq = $39‚429‚435‚518.34 IV) (a) Unlevered beta for year 1-5 = 1.1 Unlevered beta after year 5 = 0.8 (b) Equity beta
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