this change is important as it will highlight the differences between traditional based costing and activity based costing systems. This summary will also give you further findings on Competition Bikes‚ Inc. breakeven point when evaluating the sales units and the sales dollars and also the influence direct materials and fixed costs have on the breakeven analysis performed. Costing Method The traditional costing method is a distribution of manufacturing overhead costs to the actual products
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change in the total revenue from an additional unit that is sold by a firm. Example‚ the total revenue when 10 units are sold is $50‚ and total revenue when 11 units are sold is $55. Marginal Revenue in this case will be (55-50)/(11-10) = $5. One can compute the total revenue if the marginal revue and the number of units sold. If the marginal revenue of a product is zero than the total revenue will not change with an increase in the number of units sold. Marginal Cost: Marginal Cost can be termed
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what the lowest shipping schedule and cost can be based on data that he has provided. He wants to know what the lowest possible cost of shipping will can be. Mr. Wu is also considering increasing production at the Shanghai factory from 1‚300 to 2‚800 units‚ and wants to ensure that this growth will be an affordable choice. The first chart that was given lists the factory capacity and what each warehouse demand is. The second chart lists the price of shipping from each factory to each warehouse. The chart
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Measurement of the distance a paper airplane will fly in a controlled environment UBT1 Task 2 Western Governors University Introduction: This report describes an experiment to show what types of paper airplanes will fly the furthest while meeting certain controlled variables. While the general term of flight refers to all aircraft‚ the experiment does not deal with powered aircraft. Due to this‚ paper airplanes should be looked at more like a glider or sailplane.(Aerodynamics of flight‚ n.d.) Considering
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the discovery of significant losses in the first quarter of 1975 to their handling of the meeting during which the members of the task-force made their presentations? 30% It was clear that Baker had little to no control over the task force. Baker had not created the team and had no real authority (aside from being designated as the head) over the task force. The task force was a formality in the Keene & Baker’s eyes‚ thus they concluded the area that needed to be studied was marketing division (market
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Assessment task 1 In any health care system‚ quality and safety of patient’s care is very important. According to my understanding‚ quality and safety of nursing care should include patient centred care‚ good communication‚ and teamwork. Also‚ a quality nursing care should be provided with dignity and respect‚ accountability‚ and advocacy. The essential expertise of a health professional is to provide quality and safety to patient care which includes respect and dignity‚ advocacy‚ accountability
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The relationship between marginal cost (MC) and marginal revenue (MR) is fairly easy to see‚ marginal cost is the extra cost from the production on one or more units of a particular item verses marginal revenue is the change in total revenue from the sale of one or more units of a particular item. There is a principal that explains the relationship between the two best called the MR=MC rule‚ which states “that a firm will maximize its profit (or minimize its losses) by producing the output at which
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Objective 309.1.2-09: Discuss the application of elastic and inelastic demand in a given marketing situation. Introduction: Supply and demand concepts have application in everyday life. They also directly impact the business person in daily decisions. Task: A. Define the following three terms: 1. Elasticity of demand 2. Cross-price elasticity (include substitutes and complements) 3. Income elasticity (include normal and inferior goods) B. Explain the elasticity coefficients for each of the three
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A1. During the evaluation of Competition Bike’s budget schedule a few areas of concerns were identified within the budgeting and proformas. The first area of concern within budget was advertising. The advertising was budgeted for $28‚412; they may want to consider increasing their marketing to reach a wider audience to boost sales. In year 6 the advertising was $23‚820‚ then increased year 7 $32‚760‚ and year in 8 decreased to $27‚428. They need to increase their exposure within the bike market
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as it pertains to elastic‚ unit‚ and inelastic demand. Elasticity of demand is gauged by the percentage of change in demand when the price of an item varies. If the change in the quantity demanded is greater than 1 the demand is elastic. Elasticity of demand is calculated by ED=quantity demanded/decrease in price. If you reduce the price of milk by 6%‚ and that causes an increase of quantity demanded by 9% the demand for milk is elastic (ED= .09/.06 = 1.5). Unit elasticity is when the change
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