method should be changed to the activity based costing method. This report will review; the difference between traditional based costing and activity based costing; traditional split and allocations with activity based costing; and discusses the breakeven point for Competition bikes Inc. with regards to sales units and sales dollars for both CarbonLite and Titanium bikes. The first item at hand is what kind of detail does activity based costing provide that is different than traditional costing?
Premium Management accounting Variable cost Costs
Economic Feasibility Analysis worksheets. I have compiled the information that you provided into several useful and easy to read charts‚ diagrams‚ and explanations. In this memorandum you will find a summary of breakeven points using discount rates of 8‚ 10‚ 12‚ 14‚ and 16 percent‚ a breakeven chart comparing the net present value of all benefits to the net present value of all costs‚ and the internal rate of return. I also provide analysis of a couple of different scenarios‚ for example‚ a scenario
Premium Net present value Time value of money Rate of return
Hallstead Case 1.) The breakeven point in number of sales has risen along with the breakeven point in sales dollars from 2003 to 2006. The margin of safety has decreased as well. Every year they have to increase the number of sales tickets then the previous year to meet their breakeven point. After 2004 when expansion of the store begun‚ Hallstead’s fixed cost have grown each year. The decrease from 2004 to 2006 is far less substantial than from 2003 to 2004. This damage is cause by the stores
Premium Costs Suggestion Income statement
The underlying relationship in cost-volume-profit analysis is that costs‚ revenues‚ and profits all change in a predictable way as the volume of activity changes. 7-2 It is more practical to find the breakeven point in sales dollars for companies having thousands of individual items. Finding the breakeven point for each item would be laborious and meaningless. 7-3 The contribution margin ratio is: price - variable costs price The contribution margin ratio (CMR) represents the net contribution per sales
Premium Variable cost Contribution margin Management accounting
2.) Total revenue/night at breakeven 70% x 154‚000 rooms x 365 days = 39‚347‚000 nights $ 158 x 39‚347‚000 nights = $ 6‚216‚826‚000 Revenue and nights generated by members 7‚015‚000 night + (712‚000 stay x 2.4 night) – 180‚000 claimed nights = 8‚543‚800 nights $ 1‚108‚000‚000 + $ 327‚000‚000 = $ 1‚435‚000‚000 Source: pg 562‚ Table B‚ Members’ Paid Activity in 1998. Percentage of nights spent by members over nights at breakeven (8‚543‚000 nights / 39‚347‚000 nights) x 100% = 21.71% Percentage
Premium Income statement Revenue Net income
Chapter 3: Cost-Volume-Profit Analysis 95 Chapter 3 Cost-Volume-Profit Analysis SOLUTIONS LEARNING OBJECTIVES Chapter 3 addresses the following learning objectives: LO1 LO2 LO3 LO4 LO5 LO6 Explain the concepts of cost-volume-profit (CVP) analysis in decision making Apply CVP calculations for a single product Apply CVP calculations multiple products Describe the assumptions and limitations that mangers consider when using CVP analysis Assess operational risk using margin of
Premium Costs Variable cost Management accounting
547‚000 2007 $1398 7500 $10‚485‚000 $6‚054‚590 $5‚547‚000 Per Unit $1398 $807 % Change YOY -10% +8.7% -2.1% +8.7% 0% The company’s revenue decreases by $226‚041 annually by reducing prices‚ in spite of the increase in unit sales. Breakeven point in sales tickets and dollars: 0 = SP(x) - VC(x) - TFC 0 = 1398(x) - 807(x) – 5‚547‚000 0 = 591(x) - 5‚547‚000 591 (x) = 5‚547‚000 (x) = 9385 tickets 9385 x $1398 = $13‚120‚230 dollars Question 3 Break even point without sales commissions
Premium Revenue Customer relationship management Costs
be 30 percent for a profitable firm. A. Estimate the survival or EBDAT breakeven amount in terms of survival revenues necessary for the SubRay Corporation to breakeven next year. B. Estimate the NOPAT breakeven amount in terms of revenues necessary for the SubRay Corporation to breakeven next year. C. Assume that the product selling price is $50 per unit. Calculate the EBDAT and NOPAT breakeven points in terms of the number of units that will have to be sold next year.
Premium Generally Accepted Accounting Principles Revenue Income
Years 3 Average VC $1‚317‚273.00 Average Customers 8‚202.00 Average VC per unit $161.00 Fixed Cost $174‚000 ** ** 151‚000+24‚000 Breakeven=fix cost /(average revenue per unit –average vc per unit ) Breakeven =$174‚000/($187-$161) Breakeven=$174‚000/$26 Breakeven=6‚692 customer
Premium Costs Customer
+ CONCORDIA UNIVERSITY Course: Managerial Accounting‚ No.: COMM 305 & ACCO. 240 Sections: All Examination: Alternate Final Date: June‚ 2006 No. of Pages: 9 including the cover page Material Allowed: Non-programmable calculators and dictionaries Special Instructions: Answer all multiple choice questions in the Answer Sheet form no. 4521 Return the exam questions with your answers. Student Name: Student ID No
Premium Variable cost Total cost