Name: ________________________ Class: ___________________ Date: __________ ID: A quiz 7 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. The first picture below depicts the cost curves for a representative firm in this perfectly competitive industry. Initially‚ there are 100 firms. The second picture depicts market demand. Marginal Cost 10 ATC 8 AVC 6 4 2 200 400 600 800 1000 1200
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STUDY oUTLINE FOR CHAPTER 5 Strategic CAPACITY PLANNING for Products and services 1. How is capacity defined? The upper limit or ceiling on the load that an operating unit can handle 2. What are the three key questions in capacity planning? 1) What kind of capacity is needed? 2) How much capacity is needed to match demand 3)When is it needed? 3. Why are capacity decisions strategic? 1)Impacted the ability of the organization to meet future demands 2) Affect
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Cost Accounting Chapter 2 - Costs – Concepts and classification Problem 1 Problem 2 1. Direct 9. Direct 1. Manufacturing 6. Manufacturing 2. Indirect 10.Direct 2. Selling 7. Administrative 3. Direct 11.Indirect 3. Manufacturing 8. Selling 4. Direct 12.Direct 4. Selling 9. Administrative 5. Direct 13.Direct 5. Administrative 10.Selling 6. Direct 14.Direct 7. Direct 15.Indirect 8. Indirect Problem 3 1
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INTRODUCTION: Hallstead Jewelers is a family owned company that has been around for generations. After the death of their father Gretchen and Michaela resumed ownership of a business that had been very successful for many years. However‚ due to changes in the market related to competition‚ customer demand‚ and demographics‚ business has not been as profitable as the sisters hoped it would be upon taking over of (remove) the company. Michaela and Gretchen are now faced with the tough task of revitalizing
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Blockbuster Video | Pricing Strategy | Tejas V 1114054 | Executive Summary – Blockbuster Video Blockbuster Inc. is an American chain of rental stores that offers movies‚ video games‚ and other forms of media entertainment on a subscription or a rental basis to consumers. The case highlights the implications of a revenue sharing business model in the Video Rental Industry where the Movie Studios are the upstream players (Suppliers) and the Video Rental Stores
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Solution Sof-Optics – Background (External Factors) Sof-Optics is a small (specialty-niche) player in a $155M contact-lens market. (Three competitors occupy 75% of this market (Bausch + Lomb (51%)‚ American Optical (14%)‚ Continuous Curve (10%); approximately twenty players (including Sof-Optics’ ~3%) occupy the remaining 25%.) This consumer space is already appreciable in size (~5M contact-lens wearers in 1980)‚ and promises exponential growth in future years (only 10% of ~50M prospective
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GUESS WHO JEANS STATIC BUDGET VARIANCE FOR THE MONTH JUST ENDED Income Statement line-item Budgeted amount per unit Static Budget (A) 10‚000 units Actual Results (B) 16‚000 units Static Budget Variance (A) – (B) Revenue Variable costs: Materials Labor Overhead Total Contribution margin Fixed costs: Manufacturing Overhead Marketing costs Total fixed costs Operating
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Ronice M. Bruce Week 3_Course Project A - CASE STUDY ACCT 505- Prof Main January 26‚ 2013 Springfield Express is a luxury passenger carrier in Texas. All seats are first class‚ and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $160 Average variable cost per passenger $70 Fixed operating cost per month $3‚150‚000 a. What is the break-even point in passengers and revenues
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Chapter 2 Discussion Questions 1. What is the meaning of cost behavior and how does the variable cost behave differently than fixed cost (per unit & total)? Cost behavior is the change of cost relative to change in some extent of activity. The total fixed cost remains constant regardless of change in the volume of activity. However‚ the fixed cost per unit is inversely related to the change in the volume of activity. As the change in the volume of activity increases‚ the fixed cost per unit
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Exercise 10.1 1. The difference in service volume between the high and low time periods is calculated by subtracting the month with the lowest number of meals served from the month with the highest number of meals served. • 4‚900 – 3‚500 = 1‚400 2. The difference in costs between high and low months is calculated by subtracting the cost lowest month from the highest month. • 26‚000 – 20‚500 = 5‚500 3. Variable cost per meal is calculated by dividing the cost difference by the difference in service
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