Contribution Margin and Break Even Point by ACC 202 Trident University July 22‚ 2011 Contribution Margin and Break Even Point I’m going to discuss Contribution margin and what it is and how it relates to companies and profits. Contribution margin is the amount remaining from sales revenue after variable expenses have been deducted. It is the amount available to cover fixed expenses such as lease agreements and then to provide profits for the period. Contribution margin is first
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3.3 Evaluate break-even analysis as a decision-making tool. The definition of the Break-even analysis: The break-even analysis is an analysis of a product or company’s sales required to neither lose money nor make a profit‚ but simply to cover costs. Explain in mathematical term: total revenues – total costs = 0. The methods: By using a break-even formula or by drawing a break-even chart. Why is it so important using a break-even analysis? Because it gives vital information about a business or
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depend on the price offer by suppliers and volume of service provided. From the figure 1‚ revenue per month is estimated as RM15375. Figure 1: Estimated Revenue per month 7.1 Break-even Analysis Figure 2: Break-even Analysis Based on the break-even analysis‚ we have to serve 160 customers in order to break-even. Our monthly sales must hit RM20800 to cover all the costs. From the statement of cash flow‚ Adorable Pawz start making profit at the 7th month of operation. 8.0 Managing
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Cost-Volume-Profit and Break-Even Analysis Your Name ACC/561 October 12‚ 2011 Andrea Dixon Cost-Volume-Profit and Break-Even Analysis Snap Fitness Owning a business is an expensive and risky venture‚ but buying a franchise is one way to lower the risk and build confidence in the success of that new business. As a ‘no-frills’ type of fitness center‚ Snap Fitness offers its customers convenient‚ 24-hour access‚ hassle-free work outs without an annual contract. The company offers assistance
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Pronto Pizza is a family-owned pizza restaurant in Vinemont‚ a small town of 20‚000 people in upstate New York. Antonio Scapelli started the business 30 years ago as Antonio ’s Restaurant with just a few thousand dollars. Antonio‚ his wife‚ and their children‚ most of whom are now grown‚ operate the business. Several years ago‚ one of Antonio ’s sons‚ Tony‚ Jr.‚ graduated from NYU with an undergraduate degree in business administration. After graduation‚ he came back to manage the family business
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Marcus Griffiths SWOT ANALYSIS OF PIZZA HUT Is a restaurant chain and international franchise based in Addison‚ Texas‚ USA (a northern suburb of Dallas) specializing in American-style pizza along with side dishes including (depending on location): buffalo wings‚ breadsticks‚ and garlic bread. Pizza Hut is the world ’s largest pizza restaurant chain and is a subsidiary of Yum! Brands‚ Inc.‚ whose restaurants total approximately 34‚000 restaurants‚ delivery-carry out units‚ and kiosks in 100 countries
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“Pizza on Credit”: An Analysis Italy has always been perceived as a land of beauty. From its ancient architecture‚ to the abundance of timeless artwork‚ to the picturesque landscapes that appear to be almost unreal; the beauty of this country has been associated as a part of the life and culture for centuries. Even though this characteristic appeared to be common knowledge to all those who traveled to the foreign land‚ Italy itself did not always associate their country with this feature. Since
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Daiya Pizza: We’ll List Down 7 of the Best Flavors You Should Order Meta Description: Planning to order a Daiya pizza? Clueless about which one to choose? Read this post and we’ll let you know some of the best choices to consider. If you have not yet heard of Daiya pizza‚ you are missing out a lot‚ especially the opportunity to have a taste of this yummy treat. Daiya is a company known for dairy-free products‚ and a few years after commencing their operations‚ they introduced a line of mouthwatering
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Assignment: Fixed Costs‚ Variable Costs‚ and Break-Even Point Exercise 10.1 During the sixth month of the fiscal year‚ the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs‚ variable costs‚ and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3‚500 $20‚500. August 4‚000 $22‚600. September 4‚200 $23
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Domino’s Pizza Introduction: This report is going to be based upon Domino’s Pizza‚ a franchised organisation derived in Michigan‚ USA. This report will firstly give a brief overview of the history of Domino’s; it will then establish and explain the micro and macro factors that affect Domino’s and their effects on the business. It will also contain a strategy which would allow Domino’s to adapt and thrive in its ever changing environment; the report will give details explaining which external
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