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) If Tycoon were to operate at full capacity‚ calculate the followings: i) number of units produced
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ACCG330 STUDENTS’ TEMPLATE FOR KINKEAD CASE MARKET SIZE‚ SHARE‚ PRICE AND VARIABLE COST FOR EACH PRODUCT AND IN TOTAL Key causal factors Total market Market share Selling price Variable costs Electric meters Sales Variable costs Contribution Plan Expected Expected Expected Expected Actual Actual Actual Actual Actual Actual Expected Expected Expected Actual Actual Expected Expected Actual Actual Actual Expected $ 2‚400‚000 $ 1‚280‚000 $ 1‚120‚000 Market size 210‚000 $ 1‚950‚000 $ 1
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Marginal costing statements are easily understandable for profit planning because they follow managements decision making process more closely than do full cost statements. * Marginal costing statements allow a more objective appraisal of income contribution of different products. * Calculation of product cost is more convenient‚ accurate and reliable by using marginal costing statements‚ because the basis to allocate fixed costs which involve estimates and personal judgments are eliminated.
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for Waltham Motors Division to break even? Answer Q1: Breakeven Fixed costs $260‚000.00 = ---------------------------------- = ---------------------- = 13‚326 units number of units Unit contribution margin $19.51 UCM (Unit Contribution margin) = USP (Unit Selling Price) UVC (Unit Variable Costs) = = $48.00 - $28.49 = $19.51 USP = Sales / Units sold = $864‚000.00/18‚000 = $48.00 UVC = Total variable costs / Units produced = $512‚800
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MERTON TRUCK COMPANY 1) No. of Model 101= x‚ no. of model 102=y.Unit contribution/model= S.P – (Variable costs + Fixed cost).For Model 101‚ variable cost=36000 /unit‚For Model 102‚ variable cost=33000/unit.Fixed cost for both the model= 8600000 Therefore‚ total contribution z=39000x+38000y-36000x-33000y-8600000Z=3000x+5000y-8600000 The Constraints are:Engine assembly: x + 2y <= 4000Metal stamping: 2x + 2y <=6000Model 101 assembly: 2x <=5000Model 102 assembly: 3y <= 4500x‚y>=0.Solving
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RECOMMENDATION: Swisher Mower and Machine Company should reject the offer to produce the Private-Label brand. RATIONALE: • Standard Riding Mower contribution per unit would drop from $97 to $33.98‚ which is $63.02 per mower. (Appendix 4) • Contribution Margin would drop from 14.92% to 5.5%‚ which is 9.42%. (Appendix 4) • Swisher Mower would only profit $62‚819 from producing the 8‚200 units in the Private-Label in the first full year of production. (Appendix 5) o Profit per mower is only $7
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distinguish the variable costs and fixed costs‚ we now can construct the contribution margin Income Statement for SDS at its March level‚ assuming 205 hours for Intercompany usage-Question 3 Income Statement Revenues: -Intracompany $82‚000 -Commercial 110‚400 Total Revenues 192‚400 Variable Expenses: -Power 1‚697 -Hourly Personnel 8‚147 Subtotal Variable Expenses 9‚844 Contribution Margin 182‚556 Fixed Expenses: -Rent 8‚000 -Custodial Services
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2) Under what conditions should a buying division be forced to buy from an internal supplier? Under what conditions should a selling division be forced to sell to an internal division‚ rather than to outside customer? (20m) Frequently buying division will be required to buy from within the company as long as the selling division can provide goods of comparable quality and prices. Based on the situation‚ for example‚ suppose the window division can acquire the same component from within the company
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BSB60407 Advanced Diploma of Management BSB60507 Advanced Diploma of Marketing Resource Management Management 2 Financial BSBFIM601A Manage Finances ii This workbook has been designed for use in conjunction with information and materials provided at lecture and tutorial sessions. Students should attend all timetabled sessions so they can obtain all subject information. Students should read and understand all materials provided. Information that is available in digital form is not included 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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