$175.00 Audiovisual equipment rental $75.00 4 Presenters @ $500.00 $2‚000 Indirect Cost @25% of $3‚675 $906.00 Profit Margin @5% of $4‚594 $227.00 Total Fixed Cost $3‚383.00 Variable Cost 45 Workbooks @ $15.00 $675.00 45 Lunches @ $12.00 $540.00 45 Coffees @ $3.50 $157.50 Total Variable Cost $1372.50 My Break-Even point and go/no go decision is set at 30 participants. It is set lower so that if we exceed more than thirty participants then the rest would be a profit. Break-Even
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which a firm will face. The objective of Break-Even Analysis is to establish what will happen to the financial results if a specified level of activity or volume fluctuates. This information is vital to management‚ as one of the most important variables influencing total sales revenue‚ total costs and profits is output or volume. Break-Even Analysis is based on the relationship between sales revenue‚ costs and profit in the short run. The short run being a period in which the output of the firm
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relationships among the total volume of some independent variable‚ total costs‚ total revenues‚ and profits during a time period. It is particularly useful in the early stages of planning when it provides a framework for discussing planning issues. Q15-4. In a contribution income statement‚ costs are classified according to behavior as variable or fixed‚ and the contribution margin (the difference between total revenues and total variable costs) that goes toward covering fixed costs and providing
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drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours? Variable: Wages of hourly personnel‚ Power Fixed: Rent‚ custodial services‚ computer leases‚ maintenance‚ depreciation‚ salaried staff wages‚ administration‚ sales‚ systems development‚ sales promotion‚ corporate services 2.) For each expense that is variable with respect to revenue hours‚ calculate the cost per revenue hour.
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Instrumental variables and panel data methods in economics and finance Christopher F Baum Boston College and DIW Berlin February 2009 Christopher F Baum (Boston College) IVs and Panel Data Feb 2009 1 / 43 Instrumental variables estimators Regression with Instrumental Variables What are instrumental variables (IV) methods? Most widely known as a solution to endogenous regressors: explanatory variables correlated with the regression error term‚ IV methods provide a way to
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Case Study #1. Salem Telephone Company 1. Variable expenses: Power (the more hours sold‚ the more energy consumed) The hourly personnel (operations) works only when the computers are in operation Fixed expenses: The rent has to be paid despite any level of production ($8‚000 monthly) The custodial services depend on Salem Telephone’s estimated space‚ they are independent from the revenue of the Company The computer leases were acquired to run the business (before it was actually started
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the overall level of activity is Number of CDs sold. - In respect to changes in the measure of CDs sold‚ a variable cost is a cost that varies‚ in total‚ in direct proportion while a fixed cost remains unchanged‚ in total‚ regardless of any change. ->Examples of fixed and variable costs in respect to small changes in the measure of selling CDs: Cost | Cost behavior | | Variable | Fixed | The cost of advertising new store | | X | Number of CDs supplied | X | | The cost of renting
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where the sales force is paid salary plus commission is a _______. D. mixed cost An increase in total variable cost usually indicates ___________. B. the cost-driver activity level is increasing The following information is for Kinsner Corporation: Total fixed costs $313‚500 Variable costs per unit $99 Selling price per unit
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(1) the direct variable costs of providing the service‚ (2) the direct fixed costs‚ and (3) an appropriate share of the overhead expenses of the organization. In addition‚ one could make a strong argument that full-cost pricing should recognize that a profit component is necessary to support growth and‚ for investor-owned businesses‚ to provide a return to the suppliers of equity capital. Under marginal-cost pricing‚ prices are set to cover only the marginal (typically the variable) costs associated
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ACN203S Discussion class – 2nd semester 2012 – ACN203S Questions to be discussed will be from the first semester (TL101 2012) 8:30 – 12:00 (Classes will be presented only in English) ACN203S LECTURERS Telephone nr’s: RK Nzhinga (Mr) JM Verster (Ms) Y Reyneke (Mrs) E-mail address: ACN203S-12-S2@unisa.ac.za 012 429 6937 012 429 4767 012 429 4046 GENERAL MATTERS: EXAM FORMAT - 100 marks - 2 hours - 5 Questions (20 marks each) - Previous exams uploaded on MyUnisa. - Do not spot
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