1. According to the Exhibit 1 provided in the case‚ we set up new income statement for 2003‚ 2004 and 2006 (see exhibit a). The variable cost includes cost of good sold and commissions‚ and the fixed cost cover other things include selling expense‚ salaries‚ advertising‚ administrative expenses‚ rent‚ depreciation‚ and miscellaneous expenses. Then the brief result shows in the table below. 2003 2004 2006 Break-even point in dollars (in thousand of dollars) = Fixed cost/contribution margin
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"Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from the tri-state regions to buy from Hallstead’s extensive diamond collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even though the principal retail shopping areas shifted two blocks west‚ Hallstead’s reputation and selection still brought in customers. In 1999 however‚ sales became stagnate
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father’s death‚ three siblings‚ Gretchen Reeves‚ Michaela Hurd‚ and James [Hallstead]‚ inherited the Hallstead family jewelry business that has been in operation for the past 83 years. Hallstead Jewelers‚ located in the largest city of the tri-state region‚ has an established reputation for quality and selection and has grown into one of the largest jewelers in the United States. Nonetheless‚ since 1999‚ Hallstead Jewelers’ profits have been slipping and sales have stagnated. Two years ago it
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Hallstead Jewelers Managerial Accounting ACCT 2301 – Case Analysis 1 September 29‚ 2010 Melissa Ng Variable costs are made up of cost of goods sold plus sales commissions. Fixed costs are made up of salaries‚ advertising‚ administrative expenses‚ rent‚ depreciation‚ and miscellaneous expenses. Assuming all questions are answered independently: 1. Income statement using the contribution approach: | 2004 | 2005 | 2007 | Sales | $8‚583‚000 | $8‚102‚000 | $10‚711‚000 | Less:
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CASE: Hallstead Jewelers 1) How has the breakeven point in number of sales tickets (number of customer orders written) and breakeven in sales dollars changed from 2003‚ to 2004‚ and to 2006? How has the margin of safety changed? What caused the changes? The Breakeven point in number of sales tickets were “4‚535”‚ “5‚000” and “7‚505” in 2003‚ 2004 and 2006. The Breakeven in sales dollars for the three years were “$7‚287‚043”‚ “$7‚620‚696” and “$11‚655‚277” respectively. While the margin of safety
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Submitted by Yellow Team Eunice King Ronda Klassen Joshua Krupnick Larry McCraw Ronald Mills BUS 5431 Managerial Accounting Professor Nancy Shoemake April 18‚ 2010 1.0 Summary Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even
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COMPANY OVERVIEW Hallstead Jewelers has been one of the premiere jewelers in the United States for 83 years. Located in the largest city in the tri-state area‚ the company has remained a family business since its inception. Up until 1999‚ the company had operated in the same location without the need to expand or relocate due to its superb reputation and loyal customer base. However‚ Hallstead Jewelers reached a point during that year when profits began to decrease and sales became stagnant. After
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Report for Hallstead Jewelers Hallstead Jewelers is a jewelry merchandiser‚ which sells range from fine jewelry‚ gems to tabletop gifts. It has been established for 83 years and once has become one of the largest jewelry retailers in the past. With the changing of retail jewelry industry‚ it has appeared two competitive competitors: Tiffany & company‚ which was the largest diamond seller in the US and be known as their “blue box”‚ and Blue Nile‚ which found online and was the second diamond
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Hallstead Jewelers 1.) Break-even ticket sales increased from 4533 in 2003‚ to 4998 in 2004 and 7491 in 2006. Break-even point in Sales Dollars has changed from $7‚285 in 2003‚ to $7‚617 in 2004 and $11‚634 in 2006. (Table 1) The margin of safety has changed from $1‚298 in 2003‚ to $485 in 2004‚ and a loss of $923 in 2006. (Table 2) There is a decrease from 2003 to 2006. Fixed cost per month attributed to stores relocation and subsequent renovations caused a decrease from 2003 to
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Sales - Breakeven Point in Dollars)/ Budgeted Sales = ($8583000-$7287745) / $8583000 = 15.09% 2004 = ($8102000-$7620000) / $8102000 = 5.95% 2006 = ($10711000-$11655265) / $10711000 = -8.82% From the calculations‚ the breakeven point in units of Hallstead Jewelers is increasing from 2003 to 2004; started from 4558360 to 7505070; while the breakeven point in sale dollars also increased from 7325284.5 to 11655373. The biggest possibility of the increase may be the moving and renovation of the store. The
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