Cost = 250‚8000 + 502‚000 = 301‚0000 Contribution Margin Per Unit = Selling Price –Variable Costs = 30 -5 - 6 - 3 - 2 = $14 Breakeven Point in Unit Sales = 3‚010‚000 / 14 = 215‚000 Units 2. Labor-intensive method. Total Fixed Cost = 1‚538‚000 + 502‚000 = 2‚040‚000 Contribution Margin Per Unit = Selling Price –Variable Costs = 30 -5.5 - 8 - 4.5 - 2 = $10 Breakeven Point in Unit Sales = 2‚040‚000 / 10 = 204‚000 Units Question: B. Determine annual unit sales volume at which Martinez Company
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------------------------------------------------- Formulae Sheet 1. Return on Assets = Net Profit before Interest and Tax / Average Total Assets 2. Average Accounts Payable settlement = Average Accounts Payable / Credit purchases x 365 3. Asset turnover ratio = (Sales / average Total Assets) x 100 4. Asset turnover period = (Average total assets / Sales) x 365 5. Return on Equity (Return on Shareholder’s’ Funds) = Net Profit after Tax and preference dividends / Average ordinary
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Case: City Symphony Orchestra The City Symphony Orchestra is a branch of the Center for Performing Arts. It performs regular concerts throughout the year and has been reasonably profitable in the past. However‚ in recent years‚ concert attendance has been declining and the Orchestra is looking for ways to boost attendance. The traditional customers of the Orchestra have been the older and more affluent segment of the population that live in the suburbs. The recent boom in the high-tech sector
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sure the customers get what they ordered and meeting profit goals. Weekly Objectives Relevance Two essential accounting concepts can be applied in understanding Tesla’s economic position: 1) cost – volume - profit (CVP) analysis and 2) the breakeven point. First‚ a cost-volume- profit (CVP) analysis is defined as "the study of the effects of changes in costs and volume on a company’s profits" (Kimmel‚ Weygandt‚ & Kieso‚ 2009). In the case of Tesla’s current state‚ it appears a proper CVP analysis
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The Medicines Company Case Write-Up: Terence Cho‚ Felipe Duarte‚ Aleks Loiko‚ Robert Shaw‚ and James Wang Section 4‚ Group 10 Medicines Company’s drug‚ Angiomax‚ outperforms heparinHeparin‚ but requireincurs a significantly higher price costs to produce. This ‚ makesing the drug difficult to attractively price towards hospitals. This difficulty in pricing stems from a poor positioning strategy for Angiomax which does not maximize the perceived value (PV) that the drug provides to its key customer
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Learning activity II ch 8-U4 Exercise 1: Anthony Figueroa is a CPA‚ who works for an accounting consulting firm. His annual salary income is $70‚000. Anthony is considering opening up his own consulting firm. He estimates that the annual rent for an office would cost him $20‚000; a secretary would cost $24‚000 per year. If he would rent office equipment‚ he would have to pay $11‚000 per year. The purchase of required supplies‚ payment of electricity bills‚ water and telephone bills‚ would cost
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Managing Financial Resources and Decisions-HND Assignment HND Assignment Managing Financial Resources and Decisions Scenario: Emaar Properties on Sunday announced to build a new hotel in Downtown area and that will be the second tallest property in the high-end area‚ according to chief executive officer for retail Arif Amiri. Amiri did not disclose value of the project and even declined to give the sale price. “We will announce the price at public launch on September 22‚” he told reporters at
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NutraSweet in China Case Analysis MK320-02 Professor Sethi 4 November 2009 Overall Analysis of the Chinese Market: The first step in determining whether or not it is profitable for NutraSweet to enter into the Chinese market is to analyze both the strengths and weaknesses of the current market. First of all‚ it should be noted that 40% of China’s 1.2 billion consumers spend their disposable income on food purchases. Furthermore‚ China economy has the fifth largest purchasing power and
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Capstone Turbine Corporation Capstone Turbine announced the results for its third quarter (ended 31st December 2015) of fiscal 2016 on 3rd February. The company’s revenue has increased 20 % sequentially from $ 17.9 million in the second quarter to $ 21.5 million in the third quarter. The company was also able to improve its gross margin sequentially from 11 % to 19 % and reduce the net loss from $ 7.9 million to $ 6.0 million‚ an improvement of 24 %. A more representative metric than the net income
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Hallstead Jewelers Case Study Class: Managerial Accounting Instructor: Robert O’Haver 1. The break even point in units and sales have increased form 2003 to 2004 to 2006 due to the greater increase in fixed costs especially from expanding the business as well as insufficient average sales and unit sales to compensate these changes. The margin of safety has decreased over the years due to the increase in expenses and the lack of gross profit to compensate
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