month. Each toy car is sold for RM40 each. Tycoon is currently producing at 60% of its full capacity. At this level of output‚ the total costs are RM22‚000 of which RM10‚000 are fixed. Required: a) Calculate the followings: • contribution margin per unit and ratio • breakeven in sales units and in sales value • Sales value in RM required to achieve $18‚000 profit. b) In achieving the $18000 profit‚ what is the margin of safety in RM value and ratio. c)
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proposed cost and pricing structure provided for the new improved Gizmo. Under the current pricing and cost structure our breakeven point is 32836 unit or $2‚462‚686.57 in dollars‚ keeping the same selling price of $75.00 while increasing our contribution margin from $24.75 to $30.00‚ our breakeven point with the new Gizmo‚ is 36667 units or $2‚750‚000 dollars which is approximately a 112% increase. Since we are projecting that demand is relatively inelastic I would recommend an increase in
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Part 1: (Theory) Brave Brands Marketing is a well-renowned marketing organization with a strong workforce of dedicated employees. However‚ the CEO has recently identified that many of his staff members have a poor understanding of financial statements and difficulty in interpreting financial data as their tertiary education has not exposed them to such information. (Brian ‚2008) As an ADSM graduate‚ you have been asked to do research which will enable you to answer the following questions in preparation
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provide with safety for laborers due to its low temperature of 250 F. Cost to Company Cost heads | Value | Variable cost ($) | 69.18 | Depreciation Cost per unit ($) | 5 | Interest Cost per unit ($) | 3.75 | Net Cost ($) | 77.93 | Contribution margin | 50% | Sales and Distribution margin | 40% | Price as per costing ($) | 779.3 | Action Plan * Price a pad averaging it between the cost and the value it offers i.e. $1‚120. * Target sales and capacity of 18‚000 pads in the
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goods inventory. are regarded as assets before the products are sold. None of the above. 3. Once the break-even point is reached a. b. c. d. e. The total contribution margin changes from negative to positive. Net income will increase by the unit contribution margin for each item sold. Variable costs will remain constant in total The contribution margin ratio begins to decrease None of the above 1 4. Miller manufactures desks. During the most productive month of the year‚ 3‚500 desks are manufactured
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High-Low Method The controller of PATAY Hospital would like to come up with a cost formula that links admitting department cost to the number of patients admitted during a month. The admitting department’s costs and the number of patients admitted during the past nine months follow: Month Number of Patients Admitted Admitting Department’s Cost April 18 P 15‚ 600 May 19 P 15‚ 200 June 17 P 13‚ 700 July 15 P 14‚ 600 August 15 P 14‚ 300 September 11 P 13‚ 200 October 11 P 12‚ 800 November
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Group 2 (Bleaser; Humbles; Pennington; Robin; McLamb) Case Study Salem Telephone Company The purpose of creating the subsidiary is twofold: (1) to keep telephone customers from having rate increases and (2) for Salem Telephone to plan‚ control and make decisions on performance of its operations in the area served. Planning would involve a financial budget and the level of profit needed. Control would be the measurement and comparison of actual to estimated budget analysis of management’s
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This document of STR 581 Week 3 Discussion Questions consists of: DQ 1: What is a Value Chain Analysis? Describe the difference between primary and support activities - and provide examples. DQ 2: What are three ways resources become more valuable? Provide an example of each. DQ 3: How might the value‚ rarity‚ limitability‚ and organization analysis of internal capabilities complement a SWOT analysis? Provide an example. General Questions - General General Questions STR 581
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Background description Hallstead Jewelers is a large retailer specializing in jewelry and gift. It was started up as a family business and has gained reputation through their 83 years history. Hallstead provides customers with extensive collections of products‚ including jewelry‚ gems‚ watches‚ tabletop and artistic gifts‚ by its four sales departments. However‚ the market place of Hallstead was challenged as the emergence of nearby modernized shopping center which has impacted customers’ consumption
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1. (TCO A) Direct material cost is a part of: (Points : 6) Conversion Cost YES.... Prime Cost NO Conversion Cost NO.... Prime Cost YES Conversion Cost YES.... Prime Cost YES Conversion Cost NO.... Prime Cost NO | | 2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be: (Points : 6) direct costs. sunk costs. incremental costs. None of
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