The following worksheet contains cost and revenue data for Shop 48 and is typical of the company’s many outlets: | Per Pair of Shoes|
Selling price| $ 30.00 |
| |
Variable expenses:| |
Invoice cost| $ 13.50 |
Sales commission| 4.50 |
Total variable expenses| $ 18.00 |
| |
| Annual|
Fixed expenses:| |
Advertising| $ 30,000 |
Rent| 20,000 |
Salaries| 100,000 |
Total fixed expenses| $ 150,000 |
* Calculate the annual break-even point in dollar sales and in unit sales for Shop 48. Unit sales to break even = Fixed expenses / Unit CM
$150,000 / 12 = 12500
Dollar Sales to break even = Fixed expenses / CM ratio
$150,000 / 0.40 = $375,000
* If 12,000 pairs of shoes are sold in a year, what would be Shop 48's net operating income or loss? The company is considering paying the store manager of Shop 48 an incentive commission of Shop 48 an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in dollar sales and in unit sales? $18.75 ($18.00 + $0.75) per pair

Contribution margin will be $11.25 ($30.00 – $18.75) per pair. Profit = Unit CM × Q − Fixed expenses
$0= ($30.00 − $18.75) × Q − $150,000
$0= ($11.25) × Q − $150,000$11.25
Q= $150,000
Q= $150,000 ÷ $11.25Q= 13,333 pairs (rounded)
13,333 pairs × $30.00 per pair = $400,000 in sale

1. Net operating income or loss for 12,000 pairs of shoes:
Sales $360,000
Variable Expenses ($216,000)
Contribution Margin $144,000
Fixed Expenses ($150,000)
Net Operating Loss ($6000)
2. Break even point in dollar sales for 12,000 pairs:
Fixed expenses / CM ratio = $150,000 / 0.40 = $375,000
3. Break even point in unit sales for 12,000 pairs:
Fixed expenses / unit CM = $150,000 / $12 = 12,500
* Refer to the original data. As an alternative to (4) above, the company is considering paying the store manager 50 cents commission on each pair of shoes sold...

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Case: Mendel Paper Company
BUS630 Managerial Accounting
Dr. John Kuhn
Case: Mendel Paper Company
Mendel Paper Company produces four types of paper products. These paper products consist of computer paper, napkins, place mats, and poster board. In the exercise given we were to compute the estimated contribution margins for each product line with the information given in the text. My calculations are listed in the chart below:*** (which answers questions 1-4).
Computer Paper
Napkins
Place Mats
Poster Board
Estimated sales volume in units
30,000
120,000
45,000
80,000
Selling price
$14.00
$7.00
$12.00
$8.50
Variable (?)/ Material Costs
$6.00
$4.50
$3.60
$2.50
Contribution Margin
$8.00
$2.50
$8.40
$6.00
Contribution Margin Ration
(14-6)/14=0.571= 57%
(7-4.50)/7=0.357 =36%
(12-3.6)/12 = 0.7 = 70%
(8.50-2.50)/8.50 = 0.705 =71%
Total Sales Revenue
30,000 x 14.00 = 420,000
120,000 x 7.00= 840,000
45,000 x 12 = 540,000
80,000 x 8.50 = 680,000
Total Variable Cost
420,000 x .43 = 239,400
840,000 x .64 = 537,600
540,000 x .3 = 162,000
680,000 x .29 = 197,200
In this chart the contribution margin per unit was calculated by subtracting the variable/ material costs from the selling price. I had some difficulty trying to decide if the material and variable cost were the same thing. After researching and talking it over with some of my colleagues I decided that the variable cost and...

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Business Model and Strategic Plan Part III
Shawn Good
BUS/475
October 27, 2014
Fredric Hibbler
Introduction
The balance scorecard is another tool that goes along the same lines as the strength, weakness, opportunity, threat, and trend or commonly known as SWOTT. The information in this document will cover the basic aspects of the balance scorecard.
The balance scorecard method will cover four main areas or quadrants and those are: shareholder value or financial perspective, customer value perspective, process or internal operations perspective, and learning and growth of the employee perspective. These four main areas or quadrants will help explain how Samsung’s new division, Customers Research and Development will be adopted into the Samsung business portfolio.
Four Areas
1. Financial Perspective: Samsung’s new division, Customers Research and Development will initially have no upfront financial consideration with Samsung supporting the new division.
1a. The division will start to focus on how to grow their own financial support t hat is separate from Samsung’s overall financial budget. This will assist both the division and Samsung as a whole by having its own cash flow. This could also assist in providing customers that submit ideas with a financial award for their ideas that are initially taken on by Samsung.
1b. While the focus will be on how the division can become financially on its own with help still from...

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Business Model and Strategic Plan Part I: Conceptualizing a New Product or Service Division of an Existing Business
Duke Energy Incorporated
Every month families look at their bills and write checks or pay their bills online shaking their heads out how much it costs just to live the average lifestyle in the United States. Certain bills we can control like meals, entertainment, vacations, etc. but other bills we cannot control as much like rent/mortgage, utilities, insurance, etc. But, what if you could significantly lower your utility rates by almost half? I propose a new service through Duke Energy Corporation known as Duke Saves Initiative. Duke Saves Initiative is an incentive program that is offered to our customers that allows them to make more energy efficient choices and receive rewards and bonuses for making better choices.
Duke Energy Corporation
Duke Energy is a Fortune 250 company that currently services over 7 million electric customers and 500,000 gas customers in the Carolinas, the Midwest, Florida, Ohio and Kentucky. With over 150 years of experience in the industry Duke Saves Initiative is a way for Duke Energy to offer their customers a way to save money on their monthly bills while making improvements to their homes and reducing their carbon foot print. Duke Energy believes in providing electrical and gas services in a sustainable way by being affordable, reliable, and clean. (Duke Energy, 2015)
Duke Saves Initiative
Duke...

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Week2Assignment
BUS642: Business Research Methods & Tools
ASSIGNMENTS TO COMPLETE:
Chapter 2 - Discussion Questions (Making Research Decisions) #1
Chapter 6 - Discussion Questions (Terms in Review) #1-5
Chapter 14 - Discussion Questions (Making Research Decisions) # 7
Chapter 2 – Discussion Questions – Making Research Decisions #1:
A. What are the most prudent decisions she can make about her responsibilities to herself and others?
The most prudent decisions she can make about her responsibilities to herself and others, in my opinion, would be to turn the papers to the airline. The reason I believe it would be the best thing to do is because if her employer were to find out she ran the risk to get fired and although it is only a draft she could still be found dishonest and be dismissed from work. By keeping the information to herself she would be violating her firm’s Business Conduct Guidelines.
B. What are the implications of those decisions even if there is no violation of law or regulation?
The implications of those decision even if there is no violation of law or regulation could be getting fired, being seen as unethical, and implications on career ending consequences.
Chapter 6 – Discussion Questions – Terms in Review #1-5:
1. Distinguish between the following:
Exploratory and formal studies:
The difference between...

...BUS630 WEEK 1 Ashford University MANAGERIAL ACCOUNTING:
This week students will:
1. Explain the primary ethical responsibilities of the management accountant.
2. Illustrate the key principles of managerial accounting including cost concepts.
3. Distinguish between the behavior of variable and fixed cost.
4. Explain the significance of cost behavior to decision making and control.
5. Determine the necessary sales in unit and dollars to break-even or attain desired profit using the break-even formula.
FINANCIAL VS MANAGERIAL ACCOUNTING-
Financial accounting is the branch of accounting that organizes accounting information for presentation to interested parties outside of the organization. The primary financial accounting reports are the balance sheet (often called a statement of financial position), the income statement, and the statement of cash flows. The balance sheet is a summary of assets, liabilities, and shareholders’ equity at a specified point in time. The income statement reports revenues and expenses resulting from the company’s operations for a particular time period. The statement of cash flows shows the sources and uses of cash over a time period for operating, investing, and financing activities.
Managerial accounting is the branch of accounting that meets managers’ information needs. Because managerial accounting is designed to assist the firm’s managers in making business decisions,...

...BUS 475 Week 4 Knowledge Check
1. A fast-food restaurant asks customers to evaluate the drive-thru service as good, average, or poor. What level of data measurement is this classification?
Nominal
Ordinal
Interval
Ratio
Click here to download BUS 475 Week 4 Knowledge Check
2. In order to determine the average amount spent in November on Amazon.com a random sample of 144 Amazon accounts were selected. The sample mean amount spent in November was $250 with a standard deviation of $25. Assuming that the population standard deviation is unknown, what is a 95% confidence interval for the population mean amount spent on Amazon.com in November?
($245.88, $254.12)
($247.47, $260.09)
($250.64, $256.92)
($251.34, $256.22)
Want to see the complete Capstone Check..?? Click BUS 475 Capstone Part 1 and Part 2
3. A shipment of 20 DVDs has arrived at a video rental store. Based on past experience, the manager knows that 10% of all new DVDs sent to the store have a visible defect. The manager tells you to begin inspecting the new DVDs one at a time at random until you find the first DVD that has a defect. If 10% of the DVDs have a visible defect in the new shipment, what is the probability that the first DVD that has a defect is the 3rd one that you inspect? (Round your answer to 3 decimal places.)
.081
.268
.089
.716
4. An insurance agent has selected a sample of...

...1. Question : In a statistical study, the random variable X = 1, if the house is colonial, and X = 0 if the house is not colonial, then it can be stated that the random variable is continuous.
2. Question : The set of all possible experimental outcomes is called a(n)
3. Question : If two events are independent, then the probability of their intersection is represented by:
4. Question : A(n) __________ is a measure of the chance that an uncertain event will occur.
5. Question : The price-to-earning ratio for firms in a given industry is distributed according to normal distribution. In this industry, a firm with a Z value equal to 1
6. Question : The expected value of a discrete random variable is:
7. Question : For a continuous distribution, P(a ≤ X ≤ b) = P(a <X< b).
8. Question : The following formula: P(A U B) = P(A) + P(B) - P(A ∩ B) represents
9. Question : The MPG (mileage per gallon) for a mid-size car is normally distributed with a mean of 32 and a standard deviation of .8. What is the probability that the MPG for a selected mid-size car would be less than 33.2?
10.Question : The height of a continuous probability curve over a given point is
BUS 308 Week2 Quiz
1. The one-sample t-test differs from the z-test in which way?
2. The z-test can be used to test mean differences even when the initial data set is not normally distributed.
3. What question does the z test answer?
4. Type I errors may...