reached capacity‚ and management is now faced with the problem of devising a plan to organize production in such a way that will ultimately maximize their profit. As a criteria to the following analysis‚ our group of accountants has evaluated the incremental changes in profits under the alternatives that will be discussed shortly. As a result of this evaluation we have provided management with a guideline to implementing a new production process to meet their needs. Prior to the analysis it is important
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proposed incremental contribution margin per occupied room/day during the offseason? The incremental contribution margin per room/day is $5 as indicated in the chart above. 4. For each alternative in the case‚ list the annual expenses that are incremental to that decision alternative but are not related to the room/days occupied? There are 3 alternative cases (1) Invest in advertising; (2) Invest in a heating pool; (3) Invest in a summer pool As a result‚ please see the respective incremental cost
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analysis of the total incremental revenues that would be generated by incorporating Alex into the Texas Rangers team discounted to reach present value figures. Following the revenue estimation‚ I will present the total incremental cost projections considering various data presented about Major League Baseball and the Rangers. This numbers will also be discounted to reflect the present value amount. Finally‚ I will explain the reasons for arriving at my final recommendations. Incremental Revenue Projections
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Annual incremental revenue 211‚200 Collection costs 21‚000 Production and selling costs (72% of new sales) 172‚800 Annual income before taxes 17‚400 Taxes (30%) 5‚220 Incremental income after taxes $ 12‚180 Yes‚ extend credit to these customers as 43.5% incremental return is greater than 14.5%. b. Should credit be extended if 14 percent of the new sales prove uncollectible? Added sales $240‚000 Accounts uncollectible (14% of new sales) – 33‚600 Annual incremental revenue
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Introduction One will talk about all the different budgeting processes that are required to run a successful business. Beyond budgeting will be briefly discussed along with its pros and cons for global business. One will also talk about cash flows‚ balance sheets and all other different kinds of techniques that will help the firms and business. In order to produce a process and accurate report it will be major requirement to meet all the assessment criteria set by my tutor. Beyond budgeting
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price. Calibrated’s current operating data follows: Sales Revenue $200‚000 Variable Costs $100‚000 Fixed Costs $80‚000 Pretax Profit $20‚000 For each incremental addition of 500 units of output weekly‚ Calibrated would need to purchase new equipment that would add $1‚500 to weekly fixed costs. No other fixed costs would become incremental for this price change. Labor costs currently account for half of all variable costs. Additional hires‚ however‚ are expected to be more costly than the average
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: In-house : Outsourced Incremental annual cost of Option A compared to Option C (Pounds Sterling) Period< 4 years Period > 4 Years Materials 6600 7400 Labor 4700 4700 Manager’s salary 800 800 Rent of warehouse 850 850 Depreciation (opportunity cost) of Machine 500 1500 Maintenance of machine 360 360 Other expenses 1575 1575 Total 15385 17185 Payment to Packages Ltd. (Savings) -16250 -16250 Net Incremental Cost -865 935 OPTION B COMPARED TO OPTION
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Heck’s Kitchens‚ what is the minimum acceptable price of this one-time-only special order? Prepare an incremental analysis in good form. Minimum acceptable price = $455 + $300 + $45 + $50 = $850 Unit price = ($455 + $300 + $45 + $50)*120% = $1‚020 Total price of the order ($1‚020*60) $61‚200 Incremental revenue ($1‚020*60) $ 61‚200 Incremental VC ($850*60) (51‚000) Incremental increase in profit if accept special order $ 10‚200 PROBLEM 3 The management accountant for the
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(to a company/corporation) both with the project and without the project. “These cash flows‚ called incremental cash flows‚ represent the change in the firm’s total cash flow that occurs as a direct result of accepting a project”. (e-a) In other words‚ a relevant cash flow is the after-tax incremental cash flow expected from a proposed project. Other relevant cash flow examples are incremental initial outlay of resources necessary to begin a project (cost of new project) as well as the future
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map the different kinds of innovation in the case study? Which were incremental and which radical/discontinuous? Why? Give examples to support your answer. The first innovation that was mentioned in this case was that of an Incremental Innovation. An incremental innovation is a series of small improvements to an existing product or product line that usually helps maintain or improve its competitive position over time. Incremental innovation is regularly used within the high technology business by
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