Preview

16-1 Hospital Supply, Inc.

Good Essays
Open Document
Open Document
1011 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
16-1 Hospital Supply, Inc.
| Costs per Unit for Hydraulic Hoists | | | | Unit Manufacturing Costs | | | | | | | | Variable Materials | | $550 | | | | | | Variable Labor | | | 825 | | | | | | Variable overhead | | 420 | | | | | | Fixed overhead | | | 660 | | | | | | Total unit manufacturing costs | | | $2,455 | | | | | Unit Marketing Costs | | | | | | | | Variable | | | 275 | | | | | | Fixed | | | 770 | | | | | | Total unit marketing costs | | | 1,045 | | | | | Total Unit Costs | | | | $3,500 | | | | | | | | | | | | | | | | | | | | | 1) | What is the break-even volume in units? In sales dollars? | | | | | | | | | | | | | Fixed overhead | 660 | | Sell Price | $4,350 | | | | | Fixed Mktg | 770 | | VC | 2,070 | | | | | | 1,430 | | Cont. Margin | $2,280 | | | | | Normal Volume (units) | 3,000 | | | | | | | | TFC | $4,290,000 | | | | | | | | | | | | | | | | | | | | | | | | | | TFC | $4,290,000 | | BE (units) | 1,882 | | | | | Cont. Margin | 2,280 | | Sell price | $4,350 | | | | | Break-even Units | 1,882 | | Break-even Sales | $8,186,700 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2) | Impact on monthly sales, costs, and income if monthly volume increases to 3,500 units, and selling price is reduced from $4,350 to $3,850 per unit. | | | | | | | | | Current | w/Sell Price Reduction | Variance | | | | | Selling Price | | $4,350 | $3,850 | $(500) | | | | | Volume (in units) | | 3,000 | 3,500 | 500 | | | | | Sales Revenue | | $13,050,000 | $13,475,000 | $425,000 | | | | | Cost of Sales | | | | | | | | | Variable Manufacturing | (5,385,000) | (6,282,500) | (897,500) | | | | | Variable Marketing
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Acct505 Case Study 2 Springfield
    • 952 Words
    • 4 Pages

    Acct505 Case Study 2 Springfield

    Unit Sales= 35,000 passengers * $160 average full passenger fare= $5,600,000 in total revenue per month…

    • 952 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Milwaukee Surgical Supplies, Inc.
    • 728 Words
    • 3 Pages

    Milwaukee Surgical Supplies, Inc.

    3. Calculate the firm’s new receivables balance if Milwaukee Surgical toughened upon its collection policy, with the result that all non-discount customers paid on the 30th day.…

    • 728 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    cardinal health inc
    • 1287 Words
    • 4 Pages

    cardinal health inc

    The case introduces us to the Cardinal Inc which for now is the leading manufacturer in the products of medical it has its own pharmaceuticals. Company is one of the fortune 500 companies the head office is in Dublin, Ohio. So, talking about pharmaceuticals and medical products its wide services offers to more than one hundred thousand locations. it does has its own products of medical and surgical it almost includes all the types of the surgical apparel and other equipment. so, what we can conclude is it is the largest medical company it has a wide coverage of almost 75% of hospitals in U.S.it has not only given services alone it has also some of the tie ups with other companies, so they are proven to be the best ,biggest and cheapest medical suppliers in U.S. So, beginning of their starting was a long back nearly 45 years long history is what they carried with them with the name of their own in the pharmaceuticals company. it actually serves as the middle person as it connects the providers and manufactures, we can view them as a broker too. The employees are more than 30000 all around the world but during their starting they have developed themselves as the cardinal Foods inc which they later diversified in to the medical products. The long term vision of Cardinal is to be the top leader in the name of medical and Pharmaceuticals Company through continuous development, innovation, research and development, scanning environment whereas the mission of them are to retain, collect and to identify the biggest opportunities in the market place. They want to be best by serving through the best to the customers they will to win the heart of the customers through their excellent service.…

    • 1287 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Good Essays

    Distrigas Corporation
    • 1217 Words
    • 5 Pages

    Distrigas Corporation

    By substituting the appropriate values in the formula we arrive at a cost of $ 23,646,530. This cost is then divided by the total demand over 12 months of 30.7 Bcf or 30,700,000 Mcf to arrive at an average cost per Mcf of $ 0.7702 which is a 125% increase over the base charge $ 0.3359. Similarly in a scenario where the peak demand is equal to the average demand of 84109.59 Mcf we arrive at an average cost per Mcf of $ 0.4881 which is a 45% increase over the base charge of $ 0.3359.…

    • 1217 Words
    • 5 Pages
    Good Essays
    Read More
  • Powerful Essays

    Upstate Canning Melegari
    • 1425 Words
    • 8 Pages

    Upstate Canning Melegari

    Sales of $850,000 are distributed throughout the year with 50 percent in July-October, 20% November-December, 30% January – June…

    • 1425 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    A Manufacturing Company Is Thinking of Launching a New Product. the Company Expects to Sell $950,000 of the New Product in the First Year and $1,500,000 Each Year Thereafter. Direct Costs Including Labor and Materials
    • 474 Words
    • 2 Pages

    A Manufacturing Company Is Thinking of Launching a New Product. the Company Expects to Sell $950,000 of the New Product in the First Year and $1,500,000 Each Year Thereafter. Direct Costs Including Labor and Materials

    Project Statement Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | Sales | | 950,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | 1,500,000 | Direct Cost55% of sales(Sales * 55% = DC) | | 522,500 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | 825,000 | Indirect Incremental Costs | | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 |…

    • 474 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Hallstead Jewelers
    • 448 Words
    • 2 Pages

    Hallstead Jewelers

    Question 2 If average prices were reduced 10% and unit sales increased to 7,500, would the company’s income be increased? 2006…

    • 448 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Financial Management Quiz: iPhone Case Study
    • 411 Words
    • 2 Pages

    Financial Management Quiz: iPhone Case Study

    The case provides students with an understanding of the criteria for revenue recognition and the role of accrual accounting in reflecting timing differences between cash receipts and product/service delivery, especially in situations where there are multiple deliverables.…

    • 411 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    ACC 770 Case 26 3
    • 948 Words
    • 7 Pages

    ACC 770 Case 26 3

    If you consider the unit contribution margin and the volume increase, then the price reduction makes sense. The variable costs for Product 101 are $2.09 per cwt/unit. The contribution margin for the $9.41 price equals $4.152. If you multiply the $4.152 contribution margin by the volume (750,000) for the $9.41 price you get…

    • 948 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Julia’s Food Booth Case Problem
    • 649 Words
    • 3 Pages

    Julia’s Food Booth Case Problem

    References: Taylor, B. M. (2010). Introduction to management science (11th ed.). Upper Saddle River, NJ:…

    • 649 Words
    • 3 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Compensation Final Exam Outline
    • 6646 Words
    • 27 Pages

    Compensation Final Exam Outline

    4. If we had 20 Admin Support 1 positions, which companies would you include in the analysis?…

    • 6646 Words
    • 27 Pages
    Powerful Essays
    Read More
  • Good Essays

    Interwest Healthcare Corp
    • 379 Words
    • 2 Pages

    Interwest Healthcare Corp

    It is my belief that the retreat was not successful because there was ineffective communication to the hospital administrators. The retreat should have been an opportunity to motivate the individuals that attended to make choices to increase the organizations value by impressing on everyone that the organization can become more competitive by aligning the plans, processes, decisions, reporting, people, actions, and results effectively. This would include them understanding the importance of the needed information (accurate and complete reporting) and how it would improve the security of the organization and increase the organizational value. The hospital itself is a system, a sociotechnical system that people and machines carry out specific actions that follow specific procedures and guidelines. It should be explained that top management is interested in seamless and cost effective operation of the organization.…

    • 379 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Dansk Minox Case
    • 259 Words
    • 2 Pages

    Dansk Minox Case

    The impact on profit in 1966(before taxes) of selling 85 tons at a retail price of 6.85…

    • 259 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Health Care Office Solutions, Inc.
    • 1185 Words
    • 5 Pages

    Health Care Office Solutions, Inc.

    La compañía Health Care Office Solutions, Inc. conocida como HCOS fue fundada por John Marston actual CEO, quien se inicio en la industria bajo la empresa Printing Solution enfocada a la venta de formas impresas. Este reconociendo las necesidades de sus clientes las mayorías oficinas médicas y el potencial de ventas en este mercado. Decide concentrar sus esfuerzos en ventas que faciliten el mantener los documentos de los pacientes, información de seguros y regulaciones gubernamentales, servicios de excelencia que actualmente ofrece HCOS,Inc., quienes son reconocidos el mercado local, regional y nacional.…

    • 1185 Words
    • 5 Pages
    Powerful Essays
    Read More