Case 9-4 Cost-Volume-Profit Analysis and Strategy: The ALLTEL Pavilion Andrea Mullens 1) The competitive strategy of the ALLTEL Pavilion is largely focused on differentiation. With no substantial competitors in the geographic region‚ they are looking to create an “experience” for the audience and thus maintain the sustainability of the venue. They do this primarily through solid Marketing efforts. They are focused on the making the venue and each event as profitable as possible‚ by making
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unchanged‚ after doing the breakeven analysis‚ we can find the breakeven point is 42 (appendix 1c); or if all conditions are same‚ they will have $2325 profit. Breakeven point is the point at which revenues equal total costs and profit is zero. By doing this analysis‚ we can know how many calves we need to sell in this year in order to be profitable or at least not in a business loss position. According to Ex.1‚ and Appendix 1(a)‚ we know that in 2008‚ Old Mule Farms breakeven point is 74 which mean
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the company does. The company uses a lot of variable costs and the cost of sales is included in calculating the contribution margin. | 2003 | 2004 | Total fixed costs | 464 | 436 | Contribution margin ratio | ÷ 0.374 | ÷ 0.387 | Breakeven in euros | 1‚241 | 1‚127 | 2004<2003 Fixed costs- 2004<2003 CM 2004>2003 Research and Application 5-34 (continued) 4. The target profit calculation is as follows: (in millions; figures are rounded) | 2004 | Total fixed
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Final Project: Analyzing Financial Statements By: Whitney Allen (Current ratio‚ long-term solvency ratio‚ contribution ratio‚ programs/expense ratio‚ general and management/expense ratio‚ and revenue/expense ratio for the years 2003 and 2004.) * Current Ratio 2003 2004 * Long-Term Solvency Ratio 2003 2004 * Contribution Ratio 2003 2004 * Programs/Expense Ratio 2003 1.0 2004 1.11 * Management/Expense Ratio 2003 2004 * Revenue/Expense
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Explain. Conclusion: The variable manufacturing costs per unit stayed the same over 2009 and 2010. The actual variable manufacturing costs increased‚ so it’s clear that the firm has sold more units. Case question 4 The calculation of the breakeven revenue in 2011: The contribution margin % is calculated by multiplying the sales mix with the contribution margin. Case question 5 Susan’s proposed budget for 2011 includes a substantial repayment of the bank loan. If the repayment occurs
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could fixed costs increase and still maintain net operating income of $15‚000? 6. The president would like to reduce the sales price of the pipe to $2.70 per linear foot unit and increase advertising by $3‚000. Using the CM method‚ what is the breakeven point in units with these changes (round to whole units)? How many units
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1. Discuss the pros and cons to launching the foxy brand in the United States. Pros | Cons | U.S. market is 10 times larger than Canada. With right business model and price‚ foxy would gain additional revenue and profit. The brand seeks great opportunity to further develop the business‚ enhance product design as well as company’s brand image. | U.S market is different in terms of tastes for jewellery. American preferred the latest trend regardless of the product’s origin. It might take foxy
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Problem Statement In what ways can Jason Jowers strategize the pricing for ‘Atlantic bundle’ comprising of the new Tronn server and the PESA (Performance Enhancing Server Accelerator) software tool before SME trade show? Company Overview Atlantic Computers was a manufacturer of servers and related high-tech products based in Amberville‚ New York. Jason Jowers joined the Company four months ago and was made responsible for the pricing strategy of the product “Atlantic Bundle” Components of the Bundle:
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Managerial Accounting Overview BA 115 Management Accounting Measures‚ analyzes‚ and reports financial and non financial information non-financial that helps managers make decisions to fulfill the goals of an organization organization. Activity IFRS/IAS-based Financial Reports Generally‚ cannot be used for the day-to-day d t d goals of the managers. Financial vs Managerial Acctg MANAGERIAL Primary users Focus and emphasis Rules of measurement and reporting Level of detail Managers
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1. 2. Breakeven=Total Fixed Expenses/Weighted Average Selling Price-Weighted Average Variable Expenses Using Suggested Retail Prices: Weight Average Selling price= (2.99x50%)+(6.95X16%)+(14.95x12%)+(5.95x10%)+(2.95x7%)+(8.95x1%)+(24.95x1%)+(39.95x1%)+(59.95x1%)+(19.50X1%) =1.495+1.112+1.794+.595+.2065+.0895+.2495+.3995+.5995+.195 =$6.7355 Weighted Average Variable Expenses= (1.16x50%)+(2.35X16%)+(4.78x12%)+(2.5x10%)+(.97x7%)+(2.95x1%)+(9.05x1%)+(11.02x1%)+(23.06x1%)+(7.42X1%) =.58+.376+.5736+.25+
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