Submitted by Yellow Team Eunice King Ronda Klassen Joshua Krupnick Larry McCraw Ronald Mills BUS 5431 Managerial Accounting Professor Nancy Shoemake April 18‚ 2010 1.0 Summary Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even
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Sales - Breakeven Point in Dollars)/ Budgeted Sales = ($8583000-$7287745) / $8583000 = 15.09% 2004 = ($8102000-$7620000) / $8102000 = 5.95% 2006 = ($10711000-$11655265) / $10711000 = -8.82% From the calculations‚ the breakeven point in units of Hallstead Jewelers is increasing from 2003 to 2004; started from 4558360 to 7505070; while the breakeven point in sale dollars also increased from 7325284.5 to 11655373. The biggest possibility of the increase may be the moving and renovation of the store. The
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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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Background description Hallstead Jewelers is a large retailer specializing in jewelry and gift. It was started up as a family business and has gained reputation through their 83 years history. Hallstead provides customers with extensive collections of products‚ including jewelry‚ gems‚ watches‚ tabletop and artistic gifts‚ by its four sales departments. However‚ the market place of Hallstead was challenged as the emergence of nearby modernized shopping center which has impacted customers’ consumption
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1. According to the Exhibit 1 provided in the case‚ we set up new income statement for 2003‚ 2004 and 2006 (see exhibit a). The variable cost includes cost of good sold and commissions‚ and the fixed cost cover other things include selling expense‚ salaries‚ advertising‚ administrative expenses‚ rent‚ depreciation‚ and miscellaneous expenses. Then the brief result shows in the table below. 2003 2004 2006 Break-even point in dollars (in thousand of dollars) = Fixed cost/contribution margin
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"Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from the tri-state regions to buy from Hallstead’s extensive diamond collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even though the principal retail shopping areas shifted two blocks west‚ Hallstead’s reputation and selection still brought in customers. In 1999 however‚ sales became stagnate
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CASE: Hallstead Jewelers 1) How has the breakeven point in number of sales tickets (number of customer orders written) and breakeven in sales dollars changed from 2003‚ to 2004‚ and to 2006? How has the margin of safety changed? What caused the changes? The Breakeven point in number of sales tickets were “4‚535”‚ “5‚000” and “7‚505” in 2003‚ 2004 and 2006. The Breakeven in sales dollars for the three years were “$7‚287‚043”‚ “$7‚620‚696” and “$11‚655‚277” respectively. While the margin of safety
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father’s death‚ three siblings‚ Gretchen Reeves‚ Michaela Hurd‚ and James [Hallstead]‚ inherited the Hallstead family jewelry business that has been in operation for the past 83 years. Hallstead Jewelers‚ located in the largest city of the tri-state region‚ has an established reputation for quality and selection and has grown into one of the largest jewelers in the United States. Nonetheless‚ since 1999‚ Hallstead Jewelers’ profits have been slipping and sales have stagnated. Two years ago it
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Case #1 Hallstead Jewelers Answers 1. We see an increase in the break-even point‚ both in dollars and in sales tickets‚ from year 2003 to 2006. This increase is not as dramatic between the years 2003 and 2004 as it is between 2004 and 2006. The increase in break-even point in sales tickets is 1615‚80 and 7623‚90 respectively. The increase in the first year is due to the increase in fixed costs and also the decrease in sales. The increase between 2004-2006 is due to the dramatic increase
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Report for Hallstead Jewelers Hallstead Jewelers is a jewelry merchandiser‚ which sells range from fine jewelry‚ gems to tabletop gifts. It has been established for 83 years and once has become one of the largest jewelry retailers in the past. With the changing of retail jewelry industry‚ it has appeared two competitive competitors: Tiffany & company‚ which was the largest diamond seller in the US and be known as their “blue box”‚ and Blue Nile‚ which found online and was the second diamond
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