distributor for two products‚ Model A100 and Model B900. Monthly sales and the contribution margin ratios for the two products follow: Product Model A100 Model B900 Total Sales . . . . . . . . . . . . . . . . . . . .$700‚000 $300‚000 $1‚000‚000 Contribution margin ratio . . . . . . . 60% 70% ? The company’s fixed expenses total $598‚500 per month. Required: 1. Prepare a contribution format income statement for the company as a whole. 2. Compute the break-even
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The increase in the first year is due to the increase in fixed costs and also the decrease in sales. The increase between 2004-2006 is due to the dramatic increase of fixed costs because of the bigger store and higher rent and the decrease in contribution margin that is caused by the greater increase in variable costs than sales. The margin of safety on the other hand gradually decreased. The decrease between 2003-04 and 2004-06 are 20% and 47% respectively. The reason for that is the huge increase
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Seen from a systems point of view‚ sales process engineering views marketing as “a set of processes that are interconnected and interdependent with other functions. Whose methods can be improved using a variety of relatively new approaches. CONTRIBUTION TO ECONOMIC EXPANSION Marketing is seen as the task of creating‚ promoting & delivering goods & services to customers & business. Marketers are skilled in stimulating demand for the company’s products they are responsible for demand management
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Contribution of Aristotle in motion Aristotle’s ideas were believed to be true from 500 BC to 1600 CE. That’s about 1‚100 years of false knowledge. What Aristotle taught‚ appeared to be correct because it seemed obvious‚ but not all things are obvious. Aristotle’s view on motion seems to make sense. Unfortunately‚ it isn’t correct. But because his theories appeared to make sense‚ they became popular and well accepted for a very long time. The key ideas that Aristotle tried to teach were: All
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University of Connecticut School of Business Managerial Accounting - Accounting 2101 Exam 2 – SS1 2014 (Some questions have 4 options to select and others have 5) 1. Consider the following statements about companies that are involved with international operations: (I) Budgeting for these firms are highly impacted by fluctuating values in foreign currencies. (II) Multinational firms may encounter hyperinflationary economies. (III) Such organizations often face changing laws and
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Examine the contributions of Spanish film makers since the 1978‚ to the development of this art form Spanish cinema is an art form that has been developing since the first day it arrived in Spain and since 1896 (Maps of the world 2009) it has been a major feature of Spanish Culture. With cinema rapidly increasing and the amount of theatres reaching to almost 3000 by 1930’s (Jordan 2002) visual culture of Spain became a massive demand for Spaniards. With the rising of Francisco Franco and the Civil
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discussion with Wu. Action Plan 1. To conduct a cost analysis to determine the main cost activities for SDS; this will include fixed cost and variable cost. 2. To conduct a revenue analysis to determine cost per revenue. 3. To construct a detailed Contribution Margin Income Statement for SDS. 4. To present a Break-Even analysis 5. To use What-If analysis to show the impact of increasing and decreasing commercial prices and promotion. 6. To make specific recommendation based on quantitative data to
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JanMar Case Study Case Analysis United States Paint Industry The US paint industry is divided into three broad segments: architectural coatings‚ original equipment manufacturing (OEM) coatings‚ and special-purpose lacquers. The paint industry is a maturing industry. In 2004‚ sales were estimated to be slightly over $16billion and an average growth of 1-2% per year. Architectural Paint Coatings Industry The industry estimates that architectural coatings and sundries (brushes‚ paint removers
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January to be $111‚000. The company’s contribution margin ratio is 65% and its fixed monthly expenses are $64‚000. Required: Estimate the company’s net operating income for January‚ assuming that the fixed monthly expenses do not change. Show your work! | | | Student Answer: | | Construct the Variable Costing Income Statement Year 1 Sales $111‚000 Variable expenses: Variable cost of goods sold Variable selling and administrative expenses - 0 Contribution margin (.65*111000) - 72150 Fixed
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carrying out its services. 2. Assume that Polaris’s services revenues are expected to grow by 25% in the next year. How do you expect the costs identified in part 1 to change‚ if at all? 3. Based on your answer to part 2‚ can Polaris use the contribution margin ratio to predict how income will change in response to increases in Polaris’s services revenues? Use the following Research Paper Format: Times New Roman‚ with 12-point font size Double Spaced 1-inch report margins Your Research Paper
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