Kanthal Case Study Solutions INTRODUCTION:Kanthal is company that specializes in the production a nd sales of electrical resistance heating elements. Kanthal has about 10‚000 customers and they pro duce about 15‚000 items. The company consists of three divisions and these three divisions are as f ollows:1)Kanthal Heating Technology - 25% global market share2)Kanthal Furnace Products - 40% global market share3)Kanthal Bimetals - Manufacturer of one of the few fully integrated temperat ure
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the planning period. _F___6. This cost is the combined amount of all the other costs. II. Contribution margin and breakeven Apollo Company manufactures a single product that sells for $168 per unit and whose total variable costs are $126 per unit. The company’s annual fixed costs are $630‚000. Use this information to compute the company’s (a). Contribution margin‚ (b). Contribution margin ratio‚(c). Break-even point in units‚(d). Break-even point in dollars of sales. (a). CM/unit = P/unit -
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volume changes. As the owner of a Snap Fitness franchise‚ decisions about selling prices‚ product mix‚ and maximizing the use of the fitness center depends on CVP. A CVP analysis classifies cost as variable and fixed‚ and calculates a contribution margin. Relevant information identified in the analysis is the total monthly fixed costs of Snap Fitness‚ which are $6‚000. Monthly fixed operating costs are $4‚000 and monthly lease equipment costs are $2‚000. The fitness center charges $26 as a monthly
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1.PERCENT ● DEFINITION OF PERCENT - Percent means parts per 100 The symbol is % Example: 25% means 25 per 100 ● CONVERSION TECHNIQUES - ✔Changing percent to decimal Change a percent to a decimal. Move the decimal point two places to the left. In a percent‚ the decimal point would come at the end of the last number (for 75%‚ envision that it looks like 75.) Examples: 75% converts to .75 40% converts to .40 3.1% converts to .031 ✔Changing decimal or whole number to percent Change a decimal
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CHAPTER 1 Managerial Accounting and Cost Concepts ___________________________________________________________________________________ ______ Costs are split into two groups: Manufacturing Costs Nonmanufacturing Costs Manufacturing Costs: Direct Materials - Materials that go into the final product Direct Labor - Labor costs that can be traced into parts of the product Manufacturing Overhead - all manufacturing costs except direct materials/labor ‚ such as Indirect Materials‚ Indirect Labor
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Profit: $ 2500 New Price per additional unit: 0 New Contribution Margin = New Price per unit – Variable cost per unit =$8.5-$2.5 =$6 New Sales unit @40% additional sales= 5000*40%= 2000 Additional profit @40% additional Sales = Additional Sales* New Contribution Margin =2000*6 =$12000 New Sales unit @20% additional sales= 5000*20%= 1000 Additional profit @20% additional Sales = Additional Sales* New Contribution Margin =1000*6 =$6000 Steady: Sales: 5000 Price per unit: $10 Variable
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Earnings Per Share Earnings per share (EPS) is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio. The EPS is somewhat helpful in comparing one company to another‚ assuming they are in the same industry‚ but it doesn’t tell you whether it’s a good stock to buy or what the market thinks of it. For that information‚ we need to look at some ratios. http://stocks
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Recently Radio Shack has undergone a makeover during the last year and the result has been a noticeable improvement in their prospects. Radio Shack has always been steady through the years. There seems to be franchises in every mall or around the corner. As of recent‚ Radio Shack has transformed their approach on the market place and is seeking new challenges. Upon reshaping their image‚ Radio Shack has seen their total net sales and operating revenue for 2009 increased to $4.28 billion compared
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1. Evaluate the value proposition offered by the Courier Pak The product in question is a freight product that covers shipment of documents or other items up to a weight of 2 pounds and offered overnight delivery of the documents. Another value proposition of this product is the added safety feature of it being shipped in waterproof or tear-proof envelopes ensuring the documents are shipped without the possibility of damage. The targeted segment for this product is the Rush segment customers
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the ratios used to assess a company’s capability to generate earnings in comparison to its expenses and other relevant costs. Major profitability ratios include return on investment (ROI)‚ return on capital employed (ROCE)‚ gross profit margin and net profit margin. Firstly‚ ROI is a concept evaluating the efficiency of an investment‚ and equals to ‘net profit after tax’ dividing
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