| Direct Labor (22‚489 × $14) | 314‚846.00 | Variable indirect cost (22‚489 × $3) | 67‚467.00 | Fixed indirect cost ($199‚769 – $90‚000) | 109‚769.00 | Selling & Administration costs | 300‚000.00 | Dividends | 130‚000.00 | Total estimated cash payments | $1‚223‚950.00 | Estimated ending cash balance | $82‚447.38 | Calculations 1. Estimate the October sale ∵ Contribution Margin = Selling price – Variable cost = $49 - (12 + 14 + 3) = $20
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sold. Fixed costs are $1 million and unit variable costs are $0.50 per magazine. From the information provided here‚ what is SHAPE magazine ’s total revenue‚ obtained at the higher price? a. $3‚750‚000 b. $3‚250‚000 c. $2‚125‚000 d. $1‚625‚000 e. $675‚000 Answer: b Rationale: Total revenue = Price x Quantity. Total revenue at the higher price is equal to the price of $3.25 x the quantity of 1‚000‚000 copies‚ or $3‚250‚000. TOTAL COST DEFINITION The sum of fixed and variable
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Cost-Volume-Profit Analysis CVP Analysis is a way to quickly answer a number of important questions about the profitability of a company ’s products or services. CVP Analysis can be used with either a product or service. Our examples will usually involve businesses that produce products‚ since they are often more complex situations. Service businesses (health care‚ accounting‚ barbers & beauty shops‚ auto repair‚ etc.) can also use CVP Analysis. It involves three elements: Cost - the cost of
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calculate costs using the high-low method and least-square method. Your second Case Study will be Case 6-49: Comparing Multiple Cost Estimation Methods: Ethics. This case can be found at the end of Chapter 6. The primary focus of this case study is the understanding and application of fixed costs‚ variable costs‚ the least-squares method‚ and the high-low method. Your assignment is to complete the requirements identified for Case 6-49: 1-4. 1. High-low method: Variable administrative cost per patient
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Marketing Plan Grenadier Chocolate Company Limited: The Milk Mate Decision Company Description: Grenadier Chocolate Company is a midsize firm that was founded in 1973 by Mr. Ronald Berg with the aim of developing and marketing Milk Mate milk flavoring. This product is a new‚ milk modifying‚ instant chocolate syrup for household use. This is a premium product and a first of its kind. Milk Mate is a syrup as opposed to the competition which is all powder form. This quality along with
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identify the differences between start up‚ operating costs‚ variable costs‚ and fixed costs. Managing Business Expenses In this leaflet I will be elaborating on the terms start-up costs and operating costs. I will provide examples for both cases and show the comparison between the two .Having done that I will also provide‚ in detail‚ definitions for both variable costs and fixed costs. Both accompanied by examples. Start-up Costs: Start-up costs are incurred before a business operates to assure
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price drops and thus reducing income. CH-22.EX-7 Key Question A firm has fixed costs of $60 and variable costs as indicated in the table on the following page. Complete the table and check your calculations by referring to question 4 at the end of Chapter 23. a. Graph total fixed cost‚ total variable cost‚ and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost
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James Whittle Salem Telephone Company Case Study 9/29/2014 1.) The variable costs in Exhibit 2 are Power and Hourly Personnel Wages as the costs fluctuate from month to month and are driven by the revenue hours for the company. The fixed costs in Exhibit 2 are Rent‚ Custodial Services‚ Computer Equipment Leases‚ Computer Maintenance‚ Computer Depreciation‚ Office Equipment and Fixtures Depreciation‚ Salaried Staff Wages‚ Systems Development and Maintenance‚ Administrative Wages‚ Sales Wages
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external users on a periodic basis. Management accounting Management accounting is the process of identifying‚ measuring‚ analyzing‚ interpreting‚ and communicating information for the pursuit of an organization ’s goals. This is also known as "cost accounting." The differences between management accounting and financial accounting include: 1. Management accounting provides information to people within an organisation while financial accounting is mainly for those outside it‚ such as
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such things as an established sales force or access to existing channels‚ reducing barriers to entry (Porter‚ 2001) - Economies of scale: In some industries‚ economies of scale are extremely important. However‚ startup costs for e commerce retail operation are a fraction of the costs of starting a traditional brick and mortar company. - Access to industry distribution channels: In many industries manufacturers have had control over supply and/or distribution channels. In the online retain
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