MODULE 9 Self-test case (100 Minutes) Scents for Less Ltd. Updated Sept 12‚ 2011 As a recently graduated CGA‚ you started your new position as controller for Scents for Less Ltd. (SFL) on August 1‚ 2011. It is now a week later and you are working on several specific tasks assigned to you by your employer. You are understandably eager to impress your new employer and are looking forward to your new responsibilities. SFL produces generic colognes in relatively small quantities and sells them
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(2) Break-even: $300‚000 Problem 4-20 (2) Break-even: B864‚000 Problem 4-21 (1) Break-even: 12‚500 pairs of shoes; (3) $6‚000 loss Problem 4-22 (3) Net loss: $6‚000; (5a) Break-even: 21‚000 units Problem 4-23 (1b) Break-even: $732‚000; (2b) Margin of safety percentage: 22% Problem 4-24 No check figure Problem 4-25 (1) April net operating income: $21‚800 Problem 4-26 (2)
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towns and lower overhead during this time. As the economy worsened‚ people began looking for lower prices and moving to smaller towns and suburbs. Today Wal-Mart can generate big sales volume which allows the company to gain profits with low profit margin giving it an advantage over its competitors. 3. Distribution- Wal-Mart operates an unrivaled global network of 146 distribution centers (Troy‚ 2003). Because of this‚ the trickle-down effect happens. Trucks do not have to travel long distances
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hours of machine time each month to manufacture its two products. Product X has a contribution margin of $50 per unit‚ and Product Y has a contribution margin of $64 per unit. Product X requires 5 hours of machine time‚ and Product Y requires 8 hours of machine time. If Gamble Company wants to dedicate 80 percent of its available machine time to the product that provides the highest contribution margin per unit of the
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net profit margin. In both measures‚ a high percentage represents a better performance than a low percentage‚ as a business wants to earn high profits. The gross profit margin This measures the gross profit of the business as a proportion of the sales revenue. It is calculated using the following formula: Gross profit margin (% )= Gross Profit x 100 sales For example‚ if a business has gross profit of £4 million and sales revenue of £6 million‚ then the gross profit margin would be:
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BYP6-2 ACC/349 Managerial Analysis: BYP6-2 (a) Compute and interpret the contribution margin ratio under each approach. Current approach: 800‚000 / 2‚000‚000 = 0.4 Automated approach: 1‚600‚000 / 2‚000‚000 = 0.8 (b) Compute the break-even point in sales dollars under each approach. Discuss the implications of your findings. Breakeven Point – Fixed Expenses / Contribution Margin Ratio Current Approach: 200‚000 / .4 = $500‚000 Automated Approach: 600‚000 / .8 = $750
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meeting certain criteria when it came to their gross margin. They sought to increase their gross margin‚ currently sitting at 18%‚ to that of a more comfortable number of 20%. To combat this issue‚ Classic Knitwear decided to team up with Guardian‚ a producer of odorless repellant protection against bugs‚ and combine their fortes into a line of clothing infused with the bug repellant technology. These new products would hopefully to rise the gross margin to the 20% they were hoping to accomplish. The
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Kanthal Case Study Solutions INTRODUCTION: Kanthal is company that specializes in the production and sales of electrical resistance heating elements. Kanthal has about 10‚000 customers and they produce about 15‚000 items. The company consists of three divisions and these three divisions are as follows: 1)Kanthal Heating Technology - 25% global market share 2)Kanthal Furnace Products - 40% global market share 3)Kanthal Bimetals - Manufacturer of one of the few fully integrated temperature control
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$560bn in 2008 to $593bn in 2010‚ but that was not before it dropped to $545bn in 2009. Making $15.8 billion in 2010‚ the industry garnered a measly 2.9% net profit margin. 2011 is not looking any better as IATA expects net profit margins to fall to 1.2% and projects profits to fall to $4.9 billion on revenues of $632 billion(a net margin of just 0.8%) in 2012. Fuel costs continue to be a major component of any airline business model‚ forming a significant portion of an airline’s operating costs. In
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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 67.3% occupancy)
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