($400/hour IntCo.) $82‚000 Commercial Sales ($800/hour Comm.) $110‚400 Total Sales Revenue $192‚400 Variable Costs: Power ($4.70/hour) $(1‚612.10) Hourly Personnel Wages ($24/hour) $(8‚232.00) Total Varible Cost $(9‚844.10) Contribution Margin $182‚555.90 Fixed Costs: Rent $(8‚000)
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CVP Analysis | The CVP analysis helps in taking more than one decisions in a firm. How would you substantiate this statement for a unit under expansion phase | | Abstract Companies commonly face major uncertainties in their product markets‚ particularly in the manufacturing industry where competition is often fierce and consumer tastes change rapidly. Managers need to estimate future revenues‚ costs‚ and profits to help them plan and monitor operations and to decide the mix and volumes of goods
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hours 205 hours 138 hours 343 hours 205 * $400 = $82‚000 138 * $800 = $110‚400 Contribution Margin Income Statement Intra-comp sales $82‚000 Commercial sales $110‚400 Total Revenue $192‚400 Less Variable costs Operations hourly wage ($24*343) $8‚232 Sales Promotions ($4.70*343) $1‚612 $9‚844 Contribution Margin $182‚256 Less Fixed costs Space costs $9‚240 Equipment
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| Dobbie | Regular | 1 | 1 / 4.63 = 0.215983 | - | 2 | 1 / 4.63 = 0.215983 | - | 3 | 1 / 5.23 = 0.191205 | 1 / 5.23 = 0.191205 | 4 | 1 / 5.23 = 0.191205 | 1 / 5.23 = 0.191205 | 5 | 1 / 4.17 = 0.239808 | 1 / 4.17 = 0.239808 | Profit Contribution per Yard: Fabric | Manufactured (Variable cost –Selling Price) | Purchased (Selling Price – Purchase Price) | 1 | 0.99-0.66=0.33 | 0.99-0.80=0.19 | 2 | 0.86-0.55=0.31 | 0.86-0.70=0.16 | 3 | 1.10-0.49=0.61 | 1.10-0.60=0.50 | 4 | 1.24-0
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selling expense‚ salaries‚ advertising‚ administrative expenses‚ rent‚ depreciation‚ and miscellaneous expenses. Then the brief result shows in the table below. 2003 2004 2006 Break-even point in dollars (in thousand of dollars) = Fixed cost/contribution margin ratio $7‚287.03 $7‚620.20 $11‚655.34 Break-even point in units (sale ticket) = Break-even point in dollar/Sales per tickets 4535 5000 7506 Margin of Safety = (Budgeted sales - Break-even point sales)/Budgeted sales
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hotel to break even? Variable Costs: Cleaning Supplies $1‚920 Linen Service $13‚920 ½ Misc Expenses $3‚657 $19‚497 (Total Variable Cost) Variable Cost per Occupied Room Night: = =$2.54. Contribution Margin: Average Revenue = = $20.94 Contribution Margin = Revenue – Variable Cost = $20.94 – $2.54 = 18.40. Fixed Costs: = Total Costs – Variable Costs = $138‚410 - $19‚497 = $118‚913. Break Even: =. Per night: = = 54 rooms. 54 rooms on average (or
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capacity and determine if taking Hi-Valu’s proposed contract would be the optimal solution. Quantitative Analysis: * By accepting the offer‚ BBC will increase their contribution margin by $442‚290 (Exhibit 1). Although there is a loss of contribution margin equal to 3000 units of BBC’s products‚ the additional contribution margin from Hi-Valu’s proposition more than offsets the loss. * Upon accepting the offer‚ BBC will need $735‚530 per year to invest in additional assets (Exhibit 2). BBC
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Grading Summary These are the automatically computed results of your exam. Grades for essay questions‚ and comments from your instructor‚ are in the "Details" section below. Date Taken: 11/25/2012 Time Spent: 2 h ‚ 18 min ‚ 12 secs Points Received: 143 / 150 (95.3%) Question Type: # Of Questions: # Correct: Multiple Choice 10 9 Short 1 N/A Essay 3 N/A Grade Details - All Questions Page: 1 2 1. Question : (TCO A) Wages paid to an assembly line worker in a factory are
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1. Discuss the pros and cons to launching the foxy brand in the United States. Pros | Cons | U.S. market is 10 times larger than Canada. With right business model and price‚ foxy would gain additional revenue and profit. The brand seeks great opportunity to further develop the business‚ enhance product design as well as company’s brand image. | U.S market is different in terms of tastes for jewellery. American preferred the latest trend regardless of the product’s origin. It might take foxy
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| 1) What is the break-even volume in units‚ and in sales dollars? Total Fixed Costs | 4‚290‚000.00 | Total Variable Costs per unit | 2‚070.00 | Contribution Margin per unit | 2‚280.00 | Contribution Margin Ratio | 0.52 | Break-even Point in Units | 1‚882 | Break-even Point in Sales Dollars | $8‚184‚868.42 | 2) Market research estimates that
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