Cost-Volume-Profit and Break-Even Analysis Your Name ACC/561 October 12‚ 2011 Andrea Dixon Cost-Volume-Profit and Break-Even Analysis Snap Fitness Owning a business is an expensive and risky venture‚ but buying a franchise is one way to lower the risk and build confidence in the success of that new business. As a ‘no-frills’ type of fitness center‚ Snap Fitness offers its customers convenient‚ 24-hour access‚ hassle-free work outs without an annual contract. The company offers assistance
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Question4: What closing time should Citywide Spirits Shoppe choose to maximize profits? Through the Attachment: (Evening time) Contribution Margin = average purchase revenue-average purchase cost = $30.52-$23.25 = $7.27 per customer per purchase Average numbers of customer: (Attachment 2) close time averge customers Time Total customer 10pm 10.18 10pm~11pm 12 11pm 10.16 10pm~12pm 21 12pm 10.08 10pm~1am 27 1am 9.71 10pm~2am 32 2am 9.4 10pm~3am 36 3am 9.06 10pm~4am
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Forecasting HSM 260 07/19/2013 Forecasting Exercise 9.1 In the text‚ exercise 9.1 provides data for Palmdale Human Services. In this exercise it asks for the 20X5 figures using several forecasting models. The process of find 20X5 will include the use of moving averages‚ weighted moving averages‚ and exponential smoothing. The Palmdale Human Services personal expenses for the past four years are represented in the following data: Fiscal Year | Expense | 20X1 | $5‚250‚000 | 20X2 | $5‚500
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EM 505 - Decision Models‚ Fall 2012 Homework 3 - December 10-11‚ 2012 1. The diagram below depicts a system of aqueducts that originate at three rivers (nodes R1‚ R2 and R3) and terminate at a major city (node T) where the other nodes are junction points in the system. Using units of thousands of acre feet‚ the tables below show the maximum amount of water that can be pumped through each aqueduct per day and the following diagram shows the network of the system. From/To A R1 75 R2 40 R3 B 65 50 80
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Analysis Understand how cost behavior and cost-volume-profit analysis are used by managers. 2 Questions Addressed by CVP Analysis How much must I sell to earn my desired income? How will income be affected if I reduce selling prices to increase sales volume? What will happen to profitability if I expand capacity? 3 Cost-Profit-Volume Analysis What is cost-volume-profit analysis? It is the study of the effects of output volume on revenue (sales)‚ expenses (costs)‚ and net income (net profit)
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1: Score 0/4 Your response Exercise 5-1 Fixed and Variable Cost Behavior [LO1] Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1‚200 and the variable cost per cup of coffee served is $0.22. Requirement 1: Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round average cost per cup of coffee to 3 decimal places. Omit
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the relevant cost is the cargo cost only. Therefore‚ profit contribution of carrying I ton of tapioca from Balik and Singapore: Expected revenue $5.10 Less freight cost (0.25+0.56) 0.81 Profit Contibution 4.29 From Singapore to Balik: Expected Revenue $2.70 Less freight cost (0.16+0.32+0
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BREAK-‐EVEN ANALYSIS INTRODUCTION • Every business manager should want to know how many products need to be sold or services provided to cover the total costs of the business. That is they need to know what it takes to break even. • If a business cannot break-‐even then decisions need to be made to correct the situation
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follows. Cost Items and Account Balances $ Administrative salaries 15‚500 Advertising for helmets 11‚000 Cash ‚ December 1 0 Depreciation – Factory Building 1‚500 Depreciation – Office Equipment 800 Insurance – Factory Building 1‚500 Miscellaneous expenses - Factory 1‚000 Office supplies expense 300 Professional Fees 500 Property Taxes - Factory Building 400 Raw material used 70‚000 Rent on production equipment 6‚000 Research & development 10‚000 Sales commission 40‚000 Utility Costs - Factory
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What is break-even analysis? Analysis to establish that the point‚ by which the income received equals the costs tied together with obtaining the income. Break-even analysis predicts what is known as the margin of safety‚ amount which the income exceeds break-even point. It is an amount that the income can fall while still staying above the break-even point. What is break-even point? The break-even point is‚ a point‚ by which increases equal losses in general. The break-even point determines when
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