passengers= Fixed costs (divided) contribution Margin: $3‚150‚000 / $90 = 35‚000 passengers. Break-even point in revenues per month = Fare sales to breakeven (X) Sales per unit. 35‚000 x $160 = $5‚600‚000 • What is the break-even point in number of passenger train cars per month? At 70% load = 90 x 70% = 63 Breakeven point in passengers = 35‚000/63 = 556 cars c) If Springfield Express raises its average passenger fare to $ 190‚ it is estimated that the average load
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projected growth‚ additional advertising costs may be incurred. By producing a quality product associated with a strong brand name‚ these risks can be avoided. Based on the aforementioned market variables and projections‚ the net present value and breakeven analysis for first and second year of production was calculated for two scenarios: 1) 5% loss of premium beer sales 2) 20% loss of premium beer
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combined with its technological resources and capabilities. However‚ its assumptions of a drastic increase in VLAs demanded in next 20 years along with its ability to satisfy most of this are too optimistic. Provided that these assumptions (inc. breakeven points‚ initial order requirements) are normalized‚ A3XX is a project worthy to pursue for Airbus in order to exploit a neglected spot on the perceptional map – long-haul + big capacity. When we hold the market itself continues to grow as proposed
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economics. Cost-volume profit analysis is based upon determining the breakeven point of cost and volume of goods. It can be useful for managers making short-term economic decisions‚ and also for general educational purposes. CVP analysis provides managers with several advantages that help them in the decision-making process. (Kimmel‚ 2011) Some of these advantages are the following: Provide information such as what the company ’s breakeven point. This help manager’s project how future spending and production
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70+ DVD’s FOR SALE & EXCHANGE www.traders-software.com www.forex-warez.com www.trading-software-collection.com www.tradestation-download-free.com Contacts andreybbrv@gmail.com andreybbrv@yandex.ru Skype: andreybbrv The Bible of Options Strategies In an increasingly competitive world‚ it is quality of thinking that gives an edge—an idea that opens new doors‚ a technique that solves a problem‚ or an insight that simply helps make sense of it all. We work with leading authors in the various arenas
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Tropical Delight Softdrinks Problem Statement Tropical Delight Soft drinks is a small Canadian company that has a narrow line of drinks with only three flavours that was relatively unknown in the Canadian market but popular in markets of parts of Asia‚ South Asia and Tropical countries. Situation Analysis Strengths – The soft drinks were made with 30% real juice‚ which is more appealing to consumers who want natural flavours. The products were healthy and contain real fruit juices. Although
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Scenario Analysis ------------------------------------------------- Year | ------------------------------------------------- Scenario 1 | ------------------------------------------------- Scenario 2 | ------------------------------------------------- Scenario 3 | ------------------------------------------------- | ------------------------------------------------- 15% Better | ------------------------------------------------- Stated Forecast | -------------------------------------------------
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Cost-volume-profit (CVP) analysis expands the use of information provided by breakeven analysis. A critical part of CVP analysis is the point where total revenues equal total costs (both fixed and variable costs). At this breakeven point (BEP)‚ a company will experience no income or loss. This BEP can be an initial examination that precedes more detailed CVP analysis. Cost-volume-profit analysis employs the same basic assumptions as in breakeven analysis. The assumptions underlying CVP analysis are: The behavior
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1. aWhat are the assumptions implicit in Bill French’s determination of his company’s break-even point? * He has assumed that there is just one breakeven point for the firm (by taking the average of the 3 products). * He has also assumed that the sales mix will remain constant. Total revenue and total expenses behave in a linear manner over the relevant range. * Since the capacity is being expanded to increase production of Product C‚ it could be assumed that this increase should be allocated
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Find the operating breakeven point in number of CDs. Q= FC / P- VC Q= 73‚500 / 13.98 – 10.48 Q= 21‚000 CDs B) Calculate the total operating costs at the breakeven volume found in part a. EBIT= Q x (P – VC) – FC EBIT= 21‚000 x (13.98 – 10.48) – 73‚500 EBIT= 21‚000 x 3.5 – 73‚500 EBIT= 0 C) If Barry estimates that at a minimum he can sell 2‚000 CDs per month‚ should he go into the music business? 2‚000 CDs per month x 12 months = 24‚000 CDs. Since the operating breakeven point in number of
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