a) Contribution margin= Sales per unit - Varibale expenses per unit $160 - $70 $90 Break even point in passengers = Fixed expenses / Unit CM 3‚150‚000 / 90 35‚000 units Break even point in revenues per month = Unit sales to break even X Sales per unit 35‚000 X $160 $5‚600‚000 b) Break even point in number of passenger cars per month * 90 X 70% 35‚000 / 63 63 555.5555556 or 556 Cars c) Break even point in
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a typical customer in each of the four segments‚ in current dollar values? Compare these figures to the “Gross margin” figures in the original spreadsheet. What can you learn from this comparison? Solution 1 Following are the lifetime value of a typical customer in each of the four segments‚ in current dollar values. Segments / Segment description Customer lifetime value Gross margins Large accounts $78‚454 $63‚000 Large accounts‚ rebate $70‚769 $36‚000 Small accounts $10‚679 $10‚800 Small
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do not sell plastic rings only in France and continue to sell steel rings in other markets. In order to make good pricing decisions‚ Hans needs to identify what are the relevant costs in both steel and plastic ring and compare their contributing margin (CM). As the note in Table A‚ “OH was allocated on the basic of direct labor cost‚ and
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CVP calculations for a single product Apply CVP calculations multiple products Describe the assumptions and limitations that mangers consider when using CVP analysis Assess operational risk using margin of safety and operating leverage Analyze the difference between contribution margin and gross margin These learning objectives (LO1 through LO6) are cross-referenced in the textbook to individual exercises and problems. © 2012 John Wiley and Sons Canada‚ Ltd. 96 Cost Management QUESTIONS
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dividend payout‚ 2) Broadband segment expansion still going on‚ 3) Property issue expected to resolve and 5) finally UFONE to add value in longer run post 3G license announcement. We expect 1) topline average growth of 9% (2013-2015)‚ 2) gross margins to average at 37% (2013-2015)‚ 3) average market share of ICH to remain 50% (2013-2015) and 4) incoming international traffic to average at 650mn min/month. The key risks to our estimates are 1) ICH is terminated‚ 2) Upsurge in discount rate‚ 3)
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$8‚583 | $8‚102 | $10‚711 | Variable Costs | | | | Cost of Goods Sold | $4‚326 | $4‚132 | $5‚570 | Commissions | $429 | $405 | $536 | Total Variable Costs | $4‚755 | $4‚537 | $6‚106 | Contribution Margin | $3‚828 | $3‚565 | $4‚605 | | | | | Fixed Costs | | | | Salaries | $2‚021 | $2‚081 | $3‚215 | Advertising | $254 | $250 | $257 | Administrative Expenses | $418 | $425 | $435 |
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1. Abstract Summary A brief outline of Multiplastics Ltd Is discussed including the nature of their business and the problems and inefficiencies they encounter. Numerous Innovation tools are investigated leading to a recommendation towards a focus on the strengths‚ the elimination of weaknesses and the investigation into the opportunities using the SWOT analysis method. 1.1 Introduction This report demonstrates the use of an innovation tool and its application in business to provide solutions
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and consistent in the long run. This is due to the lack of knowledge in finance and costing which is it contributed to the business failure. There were disadvantages associated with a petrol station that is the fuel business had a very low profit margin. It was important that operators manage their cash collection very well. Realising the importance of management accounting concepts‚ Mr Aiman believed that the dealers and their relevant staff should have the knowledge in cost accounting. In order
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1. award: 5 out of 5.00 points Manufacturing overhead consists of: indirect materials but not indirect labor. all manufacturing costs‚ except direct materials and direct labor. all manufacturing costs. indirect labor but not indirect materials. 2. award: 6 out of 6.00 points Salvadore Inc.‚ a local retailer‚ has provided the following data for the month of September: Merchandise inventory‚ beginning balance $ 87‚480 Merchandise inventory‚ ending balance $ 86‚400 Sales $ 540
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St. Petersburg University Graduate School of Management SAMSUNG GALAXY INVESTMENT PROJECT VALUATION USING REAL OPTIONS APPROACH Project by the 1nd year students: Dudnik Maxim Fomin Maxim Fakhritdinova Dilyara Sinyakin Anton Tkachenko Nikolay St. Petersburg 2013 Content Galaxy Investment Project Valuation Company Description Samsung Group is a South Korea is an international conglomerate company. It was founded by Lee Byung-chul in 1938 and
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