ACCOUNTING 569 MIDTERM 1 FALL 1995 NAME ______________________ ID # I. 15 Points 1. Otis Corp. has the following data: Selling price $50/unit Variable manufacturing costs $20/unit Fixed costs: Manufacturing $100‚000 Selling and admin. $ 50‚000 a.(3 points) The breakeven point is: b.(3 points) Given a volume of 15‚000 units‚ operating leverage is: c.(4 points) Given
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Analyzing Financial Statements Elizabeth Black HSM/260 October 16‚ 2011 Denise Lindley University of Phoenix Analyzing Financial Statements XYZ Corporation Years 2003/2004/2002 (Respectively Listed One Page after Another) 2003 Current Ratio | | | | | | | | | | | | | | | | | Current Ratio = | Current Assets | | $82‚058.00 | | | 0.87 | | | Current Liabilities | | $93‚975.00 | | | | | | | | | | | | | | | | | | | | | | Long-Term Solvency
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to the variable cost of sales. What is the new breakeven volume with the 10% price increase? - $CM Sales % -1/13 = -7.7% New $CM B/E Sales Volume ~ 1846 3. Repositioning the water as a premium product will require an advertising and promotion budget increase of $900 daily. What is the maximum sales loss that Healthy Spring could tolerate before a 10% price increase would fail to increase net profit? That is‚ what is the break-even sales change including the incremental fixed cost of advertising
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Analysis By: Group 2 HILTON MANUFACTURING COMPANY * 2. Answer 1 Total Actual Cost = 21224 Variable Costs for 103= Compensation Insurance+ Direct Labour+ Power+ Materials + Supplies + Repairs – Other Income Total Cost (after dropping 103)= 18712 Total Revenue (after dropping 103) = 16179 Loss= 16179-18712 = 2533 $2.533 million Loss * 3. Answer 2 Old Variable Cost = 148+2321+40+1372+94+32 = 4007 k New Variable Cost = 148+2321+40+(1372+94)*1.05 +32 = 4080.3 k Old Contribution = 9.41*750-4007 =
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manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant‚ and runs two flexible assembly lines. Each assembly line can produce all three products. Required: a. Classify each of the following costs as either direct or indirect for each product. b. Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product. Direct Indirect Fixed Variable Assembly line
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basis of direct labour hours. The system has been in place with minimum change for 25 years. 1.2 THE CURRENT RISING ISSUE For the past 10 years‚ the company’s pricing has been to set each product’s budgeted price at 110 per cent of its full product cost. Recently‚ however the standard-model motor has come under increasing price pressure from offshore competitors. As a result the price on the standard model has been lowered to $110. The company CEO recently had a discussion with the financial controller
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Break - even point A firm that ‘Breaks – even’ make a profit or a loss on it product it is producing. Formula to use for break even Breakeven = Fixed Costs Point (Selling Price – Variable Cost Per Unit) £250000 (£1.50 – 70p) 80p = £31500 units E.g.) |0utput |FC |VC |TC |TR
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Introduction to Management Science‚ 10e (Taylor) Chapter 1 Management Science 1) Management science involves the philosophy of approaching a problem in a subjective manner. Answer: FALSE Diff: 1 Page Ref: 2 Main Heading: The Management Science Approach to Problem Solving Key words: scientific approach 2) Management science techniques can be applied only to business and military organizations. Answer: FALSE Diff: 1 Page Ref: 2 Main Heading: The Management Science Approach to Problem Solving
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this is not so. (10 points) This strategy does not consider risk. 3. The NuPress Valet Company has an improved version of its hotel stand. The investment cost is expected to be 72 million dollars and will return 13.50 million dollars for 5 years in net cash flows. The ratio of debt to equity is 1 to 1. The cost of equity is 13%‚ the cost of debt is 9%‚ and the tax rate is 34%. What is the NPV of the project? (10 points) WACC = .5*13+.5*9*(1-.34) = 9.47% PMT = 13‚500‚000‚ i=9.47%‚ n=5‚ PV =
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total cost. It is the point of no profits no loss. A business is said to break-even when its total sales are equal to total costs. Decision making in break-even point It helps to take short term decision for company. The break-even point identifies the total amount of sales the business needs before profit can be earned. When analyzed closely‚ the break-even analysis also helps the business to identify excessive fixed costs. Since the break-even point is directly related to the fixed costs‚ reducing
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