High-Low Method The controller of PATAY Hospital would like to come up with a cost formula that links admitting department cost to the number of patients admitted during a month. The admitting department’s costs and the number of patients admitted during the past nine months follow: Month Number of Patients Admitted Admitting Department’s Cost April 18 P 15‚ 600 May 19 P 15‚ 200 June 17 P 13‚ 700 July 15 P 14‚ 600 August 15 P 14‚ 300 September 11 P 13‚ 200 October 11 P 12‚ 800 November
Premium Management accounting Costs Regression analysis
assumptions in order to be relevant. It often assumes that the sales price‚ fixed costs and variable cost per unit are constant. Some applications are cost behavior patters‚ estimating cost behaviors‚ a modified income statement‚ an expanded contribution margin‚ multiple products or services
Premium Variable cost Costs Cost
at Sandy in order to be profitable. In order to meet the expected demand without incurring extra cost‚ increasing the operating volume at Sandy will increase the units produced at a minimum cost to the company. By comparing the changes in contribution margin to the changes in the fixed cost we are able to better evaluate the decisions on the proper distribution for manufacturing (Datar‚ Schoenebeck‚ 2014). Since the cost for additional manufacturing at Sandy would increase by double the amount
Premium Operating leverage Variable cost Pearson PLC
PROGRAMME: MBA MODULE : PGBM01 MODULE NAME: FINANCIAL MANAGEMENT & CONTROL WORD COUNT: 3‚392 PART A REPORT TO: Board of Directors FROM: AKINCOM CONSULTANT DATE: 23rd January‚ 2014 SUBJECT: Evaluation of performance of Solvent PLC PART (A) INTRODUCTION This report is submitted to Akincom Consultant for the evaluation of the performance of the Solvent PLC for the year 2010 and 2011. On the basis of the data given
Premium Variable cost Management accounting Net present value
machine hours. The division had recently lost two large contracts and was struggling to find a solid market position. Michael had instituted a policy of "contribution margin pricing" to restore profitability. He reasoned that the fixed costs w e re already in place and there was heavy excess capaci ty . Any orders t hat genera ted positive contribution would enhance bottom line profits. In two ye ars ‚ machine running time was up to almost 50% of available machine hours and the number of different pro
Premium Cost Variable cost Costs
vehicles will be used by a larger pool of different drivers. Parking fee per car per year was also higher than expected (25% more) and fuel bill were 10% higher than planned. Because these were variable cost‚ they would bring down the company’s contribution margin. However‚ as the fixed costs seemed to be stable in September‚ it would not hurt the earning that much. The good news was that the actual number of registrations was much larger than expected which showed a good sign for the future of Zip Car
Premium Variable cost Costs Contribution margin
This document of STR 581 Week 3 Discussion Questions consists of: DQ 1: What is a Value Chain Analysis? Describe the difference between primary and support activities - and provide examples. DQ 2: What are three ways resources become more valuable? Provide an example of each. DQ 3: How might the value‚ rarity‚ limitability‚ and organization analysis of internal capabilities complement a SWOT analysis? Provide an example. General Questions - General General Questions STR 581
Premium Cash flow Finance Variable cost
expected to purchase more than 31 million pound of Sun-Chips™ (see Exhibit 2). The sales price is $2.7 per pound (see Exhibit 3)‚ the contribution margin is $1.3 per pound‚ therefore‚ the total contribution will be over $40 million; exclude the effect of 30 percent of canonization rate‚ which accounts for $2.3 million loss‚ (see Exhibit 4)‚ the brand contribution of Sun Chip™ is over $38 million (see Exhibit 5). Determinants of Strategic Options Frito-Lay considers timing and competitive the big
Premium Variable cost Contribution margin Frito-Lay
Case 6-2 Birch Paper Company Internal Environment • Medium sized‚ partly integrated paper company • Portion of paperboard output was converted into corrugated boxes by the Thompson Division • Four producing divisions and a timberland division to supply part of company’s pulp requirements • Divisions judge independently on basis of profits and return on investments • Decentralization successful‚ company’s profits and competitive position improved External Environment Customer/Supplier
Premium Cost Management Competition
1546 | 1485 | 1697 | Operations: hourly personnel | 7896 | 7584 | 8664 | Total Variable Cost | 9442 | 9069 | 10361 | Total Revenue Hours | 329 | 316 | 361 | Variable Costs per revenue hour | $ 28.70 | $ 28.70 | $ 28.70 | The “contribution margin” income statement for SDS therefore is‚ Break even analysis: Based on the assumptions above‚ the number of commercial revenue hours needed to break even is as follows: (205 * 400 + x *800) -28.7 * (205+x) – 212939=0 82000
Premium Variable cost Cost Costs