Assignment 2-Problem Set Management Marketing MKT-450 Karen D. Nicosia Grand Canyon University August 29‚ 2010 Instructor: Prof. Freeman Problem 2-5 Video Concepts‚ Inc. (VCI) manufactures a line of DVD recorders (DVDs) that are distributed to large retailers. The line consists of three models of DVDs. The following data are available regarding the models: DVD Selling Price per unit Model LX1 Model LX2 Model LX3 $175.00 $250.00 $300.00 Variable Cost per unit $100.00 $125.00 $140.00 Demand/Year Units 2000
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has the best margin of safety and contribution/sales ratio. In proposal 2‚ an additional product W is added to the mix. So the fixed cost is increased. Although the fixed cost is increased‚ the profit increases sharply. What is noteworthy is that breakeven point is the largest in the 3 situations. It means that the company should take longer time to reach the breakeven point. So the company many have more risk. The recommendation is made on the basis that the company has the capacity to produce all
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Average Variable Cost : 2002 $1‚011‚008** **$417‚004+$124‚101.20+$117‚903+$351‚000 2003 1‚142‚681.00** ** $520‚069+$171‚622.70+$79‚888+$371‚101 2004 1‚798.131.00 ** ** $915‚787.50+$320‚525.52 +$115‚999+$445‚819 Total $3‚951‚820.00 No.of Years 3 Average VC $1‚317‚273.00 Average Customers 8‚202.00 Average VC per unit $161.00 Fixed Cost $174
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to use? b) Break-Even Analysis – Systems of Equations Application Problem Suppose a company produces and sells pizzas as its product. Its revenue is the money generates by selling x number of pizzas. Its cost is the cost of producing x number of pizzas. Revenue Function: R(x) = selling price per pizza(x) Cost Function: C(x) = fixed cost + cost per unit produced(x) The point of intersection on a graph of each function is called the break-even point. We can also find the break-even point using the
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1 In a process cost system‚ product costs are summarized: on job cost sheets. when the products are sold. after each unit is produced. on production cost reports. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects? the internal rate of return the discounted payback the profitability index the modified internal rate of return 3 Horizontal
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rising cost of health care are aimed at reducing medical resource consumption rates. These approaches may be limited in effectiveness because of the relatively low variable cost of medical care. Variable costs (for medication and supplies) are saved if a facility does not provide a service while fixed costs (for salaried labor‚ buildings‚ and equipment) are not saved over the short term when a health care facility reduces service. OBJECTIVE: To determine the relative variable and fixed costs of inpatient
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TUI University Variable and Fixed Cost Module 1 Case Dr. Li-Lin Liu Pa April 22‚ 2012 Part I: Use the background material and Internet to answer the questions below. Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to: * How is managerial accounting different from financial accounting? Comment on the different needs and use of financial information for internal purposes. * The managerial accounting profession and its role
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A3XX | Developing the World’s Largest Commercial Jet | | 1. Airbus’ Interests & Objectives First of all‚ the large and cost-efficient A3XX would be popular with significant growth in the air transportation industry. Worldwide passenger traffic would almost triple in volume by 2019‚ with fuel price rising in the future. Creating large and cost-efficient aircrafts‚ rather than increasing frequencies and building new routes‚ would be the long-term solutions to the problem of growing
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Figuring “fixed costs‚ variable costs‚ and” (Oppapers.com‚ 2012) BEP Week 4 Tina Whittington HSM/260 May 11‚ 2014 Laura Huffaker Figuring fixed costs‚ variable costs‚ and BEP Week 4 10.1 The highest number of meals served was 4‚900 in December‚ with the lowest of meals being 3‚500 in July making a difference of 1‚400 of meals served‚ between the two months. The cost per meal variable is 1400÷$5500.00 for a total of $3.93 (WHDM’s) fixed cost is computed as follows $20‚500.00-(3‚500*$3.93)
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Part 2 What are the variable costs? Meals the high and low $4‚900 - $3‚500 =1‚400 Cost the high and low $26‚000.00 - $20‚500.00 = $5‚500.00 The variable cost per meal is $5‚500 divided by $1‚400 which is $3.93. The variable cost for the low month is $5‚500 multiplied by $3.93which is $13‚755.00. What are the fixed costs? The total fixed cost is subtracting the variable from low time period: $20‚500 - $13‚755.00 = $6‚745 How many meals will the WHDM program need to provide during the
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