# "Hsm 260 Calculating Fixed Costs Variable Costs And Break Even Point For A Program" Essays and Research Papers

### Hsm 260 Calculating Fixed Costs Variable Costs And Break Even Point For A Program

HSM/260: Fixed Costs, Variable Costs, and Break Fixed Costs, Variable Costs, and Break 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...

Cost, Costs, Economics of production 625  Words | 3  Pages

### Fixed Costs, Variable Costs, and Break-Even Point

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...

Cost, Costs, Economics of production 480  Words | 3  Pages

### Hsm Week 4: Assignment: Fixed Costs, Variable Costs, and Break

Assignment: Fixed and Variable Costs, Break-Even Point Exercise 10.1 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? The variable cost of service is \$3.93 during the fiscal year the WHDM should provide 1,011 meals to reach their...

Cost, Costs, Economics of production 545  Words | 3  Pages

### Calculating the Break-Even Point

Calculating the break-even point To avoid making a loss every business must at least break-even by achieving a level of sales that covers its total costs. But what level of sales is necessary to break-even? To explore the concept of break-even, we need to define some basic terms: Fixed costs: Costs that do not vary with output or sales e.g. managers salaries, rent and rates on business premises. Variable costs: Costs that vary with the quantity produced or sold e.g. costs of materials...

Case study, Cost, Costs 828  Words | 4  Pages

### Variable Cost and Points Question

for \$20 a box. The lights cost Marsha \$5 a unit and any unsold lights can be returned for a full refund. She is planning to rent a booth at the upcoming Happy Holidays Convention, which offers three options: 1. paying a fixed fee of \$1,500, or 2. paying a \$500 fee plus 10% of revenues made at the convention, or 3. paying 25% of revenues made at the convention.Which of the following statements is FALSE? Answer | | One of the options will allow Marsha to break even, even if she doesn't sell any...

Contribution margin, Cost, Costs 1238  Words | 7  Pages

### Definition of Break Even Point

Definition of Break Even point: Break even point is the level of sales at which profit is zero. According to this definition, at break even point sales are equal to fixed cost plus variable cost. This concept is further explained by the the following equation: [Break even sales = fixed cost + variable cost] The break even point can be calculated using either the equation method or contribution margin method. These two methods are equivalent. Equation Method: The equation method centers on...

Contribution margin, Cost-Volume-Profit Analysis, Costs 542  Words | 3  Pages

### Break Even Point Analysis

#3 Break-Even Analysis Rob Holland Assistant Extension Specialist Agricultural Development Center September 1998 One of the most common tools used in evaluating the economic feasibility of a new enterprise or product is the break-even analysis. The break-even point is the point at which revenue is exactly equal to costs. At this point, no profit is made and no losses are incurred. The break-even point can be expressed in terms of unit sales or dollar sales. That is, the break-even units...

Cost, Costs, Economics of production 758  Words | 3  Pages

### The Break Even Point

The break-even point for a product is the point where total revenue received equals the total costs associated with the sale of the product (TR=TC). [1]A break-even point is typically calculated in order for businesses to determine if it would be profitable to sell a proposed product, as opposed to attempting to modify an existing product instead so it can be made lucrative. Break even analysis can also be used to analyse the potential profitability of an expenditure in a sales-based business. break...

Cost, Costs, Economic cost 1144  Words | 4  Pages

### Fixed Cost Variable Cost and Break Ev

﻿ Jennifer Smith Fixed Cost, Variable Cost, and Break-Even Point HSM/260 Cynthia Cucuzza November 23, 2014 Exercise 10.1 Cost: High-Low= \$26, 000.00 −\$20,500.00 =\$5,500.00  The variable cost per meal: \$5,500.00 ÷ 1,400 = \$3.93  The variable cost for the low month: \$13,755.00 Fixed cost: \$20,500.00 − ( 3,500 •\$3.93 ) = \$6,745.00 PX = A + BX 5.77 X = 6,745 +3.93 X 5.77 − 3.93 = 6,745 + (3.93 − 3.93) 1.84 X = 6,745 1.84 X ÷ 1.84 X = 6,745 ÷ 1.84 X X = 3,666 (Monthly BEP) 3,666 * 12 = 43,992...

Costs, Economics of production, Variable cost 121  Words | 4  Pages

### Hsm 260 Week 6

Week 6 HSM 260 Due Day 7 Exercise 11.1 Followed by the family and child benefits being such a success in the previous seminars, the Advocates for Children agency is going to conduct another seminar. The agency is a private nonprofit agency. This seminar is going to be conducted in one day for the children and families within the area. The activities that will be conducted at the seminar will provide a profit to help support the agency. The seminar is planned to take place in a conference room...

Costs, Fixed cost, Total cost 602  Words | 3  Pages

### Variable Costs

iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping. 3. Prepare a flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using actual costs for August. 4. Estimate material price and usage for flash memories...

Apple Inc., Cost, Costs 460  Words | 3  Pages

### Variable Cost and Contribution Margin

﻿CHAPTER 1 – COST VOLUME PROFIT- MULTIPLE CHOICE QUESTIONS 1. CVP analysis can be used to study the effect of:  A. changes in selling prices on a company's profitability. B. changes in variable costs on a company's profitability. C. changes in fixed costs on a company's profitability. D. changes in product sales mix on a company's profitability. E. All of these. 2. The break-even point is that level of activity where:  A. total revenue equals total cost. B. variable cost equals fixed cost. C. total...

Contribution margin, Cost, Costs 1377  Words | 7  Pages

### Break Even Point

Break-even point is that point at which there is neither profit nor loss. It is at point costs are equal to sales. It is otherwise called as balancing point, neutral point, equilibrium point, loss ending point, profit beginning point etc. After BEP is achieved, all the further sales will contribute to profit. At BEP, Sales – Variable cost = Fixed costs. OR Contribution = Fixed costs. Break-even analysis Break-even analysis is an analytical technique that is used to determine the probable...

Cost, Costs, Economics 649  Words | 3  Pages

### Harrington: Cost and Variable Costs

analysis it is important to calculate the unit price first. Using the wholesale price rather than the retail price, the calculated unit price is \$95. Next, we sum up the start-up costs and operating costs, both fixed and variable, and use these numbers to calculate the breakeven units. After calculation, the breakeven point is 289,846 units. Appendix A shows the details of our process. Active-wear sales are expected to double by 2009, and 40% of those sales are expected to be classified as ‘better’...

Contribution margin, Cost, Costs 1073  Words | 4  Pages

### Cost Volume Profit Analysis

COST – volume –profit analysis LEARNING OBJECTIVES Students should be able to: 1. Explain the nature of CVP Analysis and name and illustrate planning and Decision-making situations in which it may be used, 2. Separate semi-variable (mixed) costs into their fixed and variable components. 3. Construct profit/volume charts given selling price, costs and volume data. 4. Construct a cost/volume/profit (CVP) model representing the data in a marginal ...

Contribution margin, Costs, Economics of production 802  Words | 5  Pages

### Fixed Costs, Variable Costs, and Bep

Fixed Costs, Variable costs, and Break Even Point Elizabeth Gaud HSM /260 August 21, 2011 Stephanie Koontz Exercise 10.1 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? Answer: ...

Addition, Cost, Costs 511  Words | 2  Pages

### Fixed and Variable Costs

Health services managers are essentially interested in how costs are affected by changes in volume. Cost behavior refers to a cost's reactions to activity level. A cost may rise, fall, or remain constant as activity levels fluctuate. We can classify several types of costs on the basis of their relationship to the amount of services provided, often referred to as activity, utilization, or volume (Gapenski, 2012). When dealing with the future there is a level of uncertainty of volume with regard to...

Cost, Cost driver, Costs 888  Words | 3  Pages

### Break Even

Training guide to break even analysis. What is breakeven analysis? Break even analysis is a calculation to show at what point you are making no profit or loss, so it is when a businesses total revenue covers total costs so it is to show how much output you will have to produce to cover your total costs, within a business. Break even is usually shown in the form of a graph. To work out the break even point of a business you need 3 important components which are: 1. Fixed costs, which are not usually...

Cost, Costs, Fixed cost 1210  Words | 4  Pages

### Variable Cost and Contribution Margin

130 11,180 Net Cash Flows from Operating Activities P153,850 COST VOLUME PROFIT 1. Melanie Company produces a merchandise that has the following data: Unit Sales price P80 per unit Unit vairiable costs P48 per unit Total fixes costs P640,000 per annum Units sold during the current year P25,000 units A. Unit contribution margin, contribution margin ratio and variable cost ratio. B. Breakeven point in units and in pesos. C. Margin of safety in units and in pesos,...

Contribution margin, Costs, Fixed cost 997  Words | 7  Pages

### HSM 260 FINANCIAL MANAGMENT FOR HUMAN SERVICE MANAGERS Complete Class Includes All DQs Individual and Team Assignments UOP Lates

﻿HSM 260 – FINANCIAL MANAGMENT FOR HUMAN SERVICE MANAGERS – Complete Class Includes All DQs, Individual and Team Assignments – UOP Latest Purchase this tutorial here: https://www.homework.services/shop/hsm-260-financial-managment-for-human-service-managers-complete-class-includes-all-dqs-individual-and-team-assignments-uop-latest/ HSM 260 Entire Course Includes All DQs, Checkpoints, Assignments, Capstone and Final HSM 260 Financial Management for Human Service Managers Week One: Foundations...

Accrual, Balance sheet, Cost 1741  Words | 16  Pages

### Break Even Analysis

Break-even Analysis Grace L. Harden University of Phoenix January 30, 2011 Break-even Analysis Getwell Clinic on Beach Street concentrates care and treatment of three different types of patients listed as DRG-M, DRG-J, and DRG-P. Dr. Barkley is the new director of the satellite office and has requested that statistical break-even points be completed for each DRG. He would also like information on which DRG is the most profitable to promote in the growing practice. Diagnosis-Related...

Contribution margin, Cost, Costs 715  Words | 4  Pages

### Break even Analysis

﻿Break even analysis is an important part in production management and decision making. In this assignment, the key elements of the break-even analysis will be discussed. The key elements of break-even analysis are fixed cost, variable cost, total revenue, break-even point and margin of safety. Although break-even analysis is very useful, it has disadvantages. Break-even analysis is based on the production cost of the company which includes the fixed cost and variable cost. Then the total cost of...

Cost, Costs, Economics of production 1590  Words | 5  Pages

### Midterm: Variable Cost

Prime cost. | B | Conversion cost. | C | Period cost. | D | Nonmanufacturing cost. | 2. | Prime cost and conversion cost share what common element of total cost? | A | Direct materials. | B | Direct labor. | C | Variable overhead. | D | Variable overhead. | 3. | On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: | A | the amount of cost charged to Work in Process during the period. | B | the amount of cost transferred...

Contribution margin, Cost, Costs 1266  Words | 7  Pages

### Variable Cost and Contribution Margin

term manufacturing overhead? | A) | Factory overhead | B) | Pervasive costs | C) | Burden | D) | Indirect manufacturing costs | 2. | Which one of the following is an example of a period cost? | A) | A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer. | B) | Workers' compensation insurance on factory workers' wages allocated to the factory. | C) | A box cost associated with computers. | D) | A manager's salary for work that is...

Contribution margin, Costs, Inventory 836  Words | 5  Pages

### Variable Cost

Latasha Thomas January 20, 2013 HSM 260 Jerome Anderson Exercise 10.1 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? The variable cost of service is \$3.93 during the fiscal year the WHDM should provide 1,011 meals to reach...

Costs, Fixed cost, Total cost 424  Words | 2  Pages

### Costs and Total Variable Cost

1/1.5 / ¼.5= .67%/ 22%= 3.05 Ch 22 #7 1. Key Question A firm has fixed costs of \$60 and variable costs as indicated in the table on the following page. Complete the table and check your calculations by referring to question 4 at the end of Chapter 23. 1. Graph total fixed cost, total variable cost, and total cost. Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves Graph AFC, AVC, ATC, and MC. Explain the derivation and shape of each...

Costs, Economics of production, Fixed cost 424  Words | 3  Pages

### Annual cost

﻿Break-even Analysis The annual maintenance coast of machine shop is P 69,994. If the cost of making a forging is P 56 per unit and its selling price is P 135 per forged unit, find the number of unit to be forged to break-even. Solution: Let: x = number of units to be forged to break-even Income = 135x Expenses = 69,994 + 56x To break-even: Income = Expenses 135x = 69,994 + 56x 79x =69,994 x = 886 units Steel drum manufacturer incurs a yearly fixed operating...

Contribution margin, Cost, Costs 355  Words | 3  Pages

### Break Even Analysis

Break Even Analysis University of Phoenix Accounting in Healthcare ACC561 November 26, 2010 Break Even Analysis Relevance of DRG Analysis as a Tool in Healthcare DRG analysis helps managers in health care determine levels of service at which to operate and to break even as well as avoid any loses. Using the DGR analysis, management will be able to determine the appropriate levels at which to operate making the most of any profits (Steven, & David, 2000). The management team of...

Contribution margin, Cost, Costs 758  Words | 3  Pages

### Cost Volume Profit Analysis

COST-VOLUME-PROFIT ANALYSIS(CVP) Definition of Cost Accounting A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step of production as well as fixed costs such as depreciation of capital equipment. Definition of Cost-Volume Profit Analysis A method of cost accounting used in managerial economics. Cost-volume profit analysis is based upon determining the breakeven point of cost and volume of goods. It can be useful for...

Cost, Costs, Economics 488  Words | 3  Pages

### Break Even Analysis

Introduction: Break-even analysis is a technique widely used by production management and management accountants. It is based on categorizing production costs between those which are "variable" (costs that change when the production output changes) and those that are "fixed" (costs not directly related to the volume of production). Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume, sales value or production at which the business makes...

Contribution margin, Cost, Costs 1059  Words | 6  Pages

### Variable Cost

Running head: VARIABLE COSTS Variable Costs ACC/561 June 12, 2012 Variable Costs Any cost which is not fixed and will change in same amount when there is change in production volume is accounted as variable costs. This also means that they change in total rather than per unit whenever there is production or activity change. In production- labor, material or overhead could be the variable costs involved in the business. In Fitness center, there are different variable costs involved and each...

Business, Cost, Costs 783  Words | 3  Pages

### Variable Costs

Assignment: Fixed cost Dora McKinney Hsm/260 Week 4 Instructor: Greg O’Donnell Fixed Costs, Variable Costs, and Break-Even Point Exercise 10.1 Month Meals Served Total Costs July 3,500 \$20,500 Low August 4,000 22,600 September 4,200 23,350 October 4,600 24,500 November ...

Cost, Costs, Fixed cost 564  Words | 2  Pages

### Break Even Analysis

Break Even Analysis A break even analysis is a method used widely by businesses to assist them with finance. The break even analysis shows a business when their amount of revenue is equal to their costs. This is known as the break-even point. Although the break even analysis shows many other things, this is the main thing companies look out for when composing a break even graph. The break even analysis is very important to businesses as it a way of measuring their success over a certain period...

Cost, Costs, Economics of production 550  Words | 3  Pages

### Cost and Revenue Function

Algebra I Cost-Revenue Business Project This project is designed for you to demonstrate your understanding of systems of linear equations. Before starting, read the entire project outline and requirements. During this project you are to do the following: 1) Pair up with a partner and create a business that sells one commodity of your choice (points for creativity). 2) Create a Market Research Survey that will be used to survey 50 students to help you discover what potential customers are looking...

Cost, Costs, Fixed cost 708  Words | 3  Pages

### Hsm 260 Final

HSM 260 Final February 23,2013 Calculation of Ratios: Ratio | 2003 | 2004 | Current Ratio = Current Asset Current Liability | 0.87 | 0.90 | Long-Term solvency Ratio = Total Asset / Total Liability | 1.38 | 2.06 | Contribution Ratio = Largest Revenue Source/ Total Revenue | 0.51 | 0.49 | Management Expense Ratio = Management Expense/Total Expense | 0.282 | 0.226 | Program Expense Ratio = Program Expense/Total Expense | 0.66 | 0.72 | Revenue Expense Ratio = Total Revenue/Total...

Cost, Costs, Expense 1679  Words | 7  Pages

### Contribution Margin and Break Even Analysis

Contribution Margin and Break Even Analysis. Many factors come into play in determining business success. One of them is the financial factor. For a company to set financial goals it is crucial that its management know in detail the products or services they sale or provide. This is the analysis of two different scenarios at Aunt Connie's Cookies Simulation (University of Phoenix, 2011) and the financial performance of Jamestown Electric Supply Company (Heiter, et. al. 2008). During both analysis...

Contribution margin, Cost, Costs 1622  Words | 5  Pages

### Domino: Variable Cost and Mr. Blanchard

profitability of this project. The store was run with a 30% profit margin, and management evaluations were based on maintaining this level of performance. Domino’s was best known for their super-deluxe pizza, and this pie was used to estimate costs. Ingredients averaged \$2.25/pie. Additionally, new drivers would need to be hired to service the new accounts. Mr. Blanchard figured that training and insurance expenses for the new staff would come to total of \$20,000. Commission to drivers on...

Contribution margin, Cost, Costs 510  Words | 4  Pages

### Questions on Break Even Analysis

PRACTICE QUESTIONS ON BREAK-EVEN ANALYSIS 1. A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be \$40,000 for A and \$30,000 for B; variable costs per unit would be \$10 for A and \$12 for B; and revenue per unit would be \$15 for A and \$16 for B. a) Determine each alternative’s break-even point in units. b) At what volume of...

Cost, Costs, Fixed cost 588  Words | 2  Pages

### Costs and Opportunity Cost

Ronald Coase noted,“The cost of doing anything consists of the receipts that could have been obtained if that particular decision had not been taken.” For example, the opportunity set for this Friday night includes the movies, a concert, staying home and studying, staying home and watching television, inviting friends over, and so forth. The opportunity cost of taking job A included the forgone salary of \$102,000 plus the \$5,000 of intangibles from job B. Opportunity cost is the sacrifice of...

Cost, Costs, Economic cost 1862  Words | 6  Pages

### Cost–Volume–Profit Analysis

have been provided with current demand, current operating capacity, fixed costs, variable costs and other ancillary information. It was also brought to our attention that presently the Company is catering the demand of its product W within a local community. However the Company wishes to analyse the implications if a decision is made in respect of launching product W at the state level. As a consulting firm, we will perform a cost-volume-profit [CVP] analysis whereby we will examine where the Company...

Contribution margin, Cost, Costs 828  Words | 3  Pages

### Microeconomics: Variable Cost

Microeconomics Topic 6: “Be able to explain and calculate average and marginal cost to make production decisions.” Reference: Gregory Mankiw’s Principles of Microeconomics, 2nd edition, Chapter 13. Long-Run versus Short-Run In order to understand average cost and marginal cost, it is first necessary to understand the distinction between the “long run” and the “short run.” Short run: a period of time during which one or more of a firm’s inputs cannot be changed. Long run: a period of time during which...

Average cost, Cost, Cost curve 1833  Words | 6  Pages

### Variable Cost

budgets. 3. The costs of direct materials are classified as:     A. Choice A B. Choice B C. Choice C D. Choice D 4. The three basic elements of manufacturing cost are direct materials, direct labor, and:  A. cost of goods manufactured. B. cost of goods sold. C. work in process. D. manufacturing overhead. 5. 25. Prime cost consists of direct materials combined with:  A. direct labor. B. manufacturing overhead. C. indirect materials. D. cost of goods manufactured. ...

Cost, Costs, Economics of production 856  Words | 5  Pages

### Mixed Costs

Definition and explanation of mixed or semi variable cost: A mixed cost is one that contains both variable and fixed cost elements. Mixed cost is also known as semi variable cost. Examples of mixed costs include electricity and telephone bills. A portion of these expenses are usually consists line rent. Line rent normally is fixed for each month. Variable portion consists units consumed or calls made. The relationship between mixed cost and level of activity can be expressed by the following equation...

Costs, Fixed cost, Variable cost 1258  Words | 5  Pages

### Break Even Analysis

Break Even Analysis In business planning, asking the proper questions and obtaining answers to those questions is arguably the most important thing. Questions such as; how much do we have to sell to reach our profit goal? How much do our sales need to increase in order to cover a planned increase in advertising costs? What price should we charge to cover our costs and allow for the planned profit goals? Is our business going to be profitable? Answers to such difficult questions become accessible...

Business, Costs, Fixed cost 1239  Words | 4  Pages

### Marginal Cost

[pic] 3. Find the x value of the turning points on the graph of y = [pic] and determine whether it is a maximum or a minimun point. 4. Find the coordinates of the two turning points of the function y = x3 - 8 x2 + 5 x + 3 5. For a particular function, dy/dx = 4x - 3. If it is known that when x = 1, y = 5, find y in terms of x. 6. A manufacturing process costs RM 6500 to set up for one year’s use. If items cost RM 85 each to produce and other costs amount to 3.5 x2, where x is the production...

Cost, Costs, Economics of production 909  Words | 3  Pages

### Quiz: Variable Cost and Contribution Margin

Quiz – Chapter 17 – Solution 1. Rider Company sells a single product. The product has a selling price of \$40 per unit and variable expenses of \$15 per unit. The company's fixed expenses total \$30,000 per year. The company's break-even point in terms of total dollar sales is: A) \$100,000. B) \$80,000. C) \$60,000. D) \$48,000. The answer is d. CMR = (P-V)/P = (\$40 - \$15)/\$40 = 62.5% Px = F/ (CMR) Px = \$30,000/.625 = \$48,000 Use the following to answer questions 2-3: Weiss Corporation produces two models...

Arithmetic mean, Contribution margin, Costs 1007  Words | 4  Pages

### Cost Plan

Cost – volume – profit (CVP) analysis exercises Question 1 Lewis and Clark Co., a canoe manufacturer has a projected income for the next financial year as follows: Sales (10,000 units) €6,000,000 Operating Expenses: Variable Expenses € 4,500,000 Fixed Expenses € 450,000 Total Expenses €4,950,000 Net Income €1,050,000 Required: 1) Determine the breakeven in units Step 1: Unit Sales Price = Sales value / units = Step 2: Variable Cost per unit =...

Cost, Costs, Variable cost 608  Words | 4  Pages

### Variable Cost and Company

Section B Attempt Any Six Questions (6*5= 30) 1. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 2. Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units July. . . . . . . . . . . . . . 30,000 August . . . . . . . . . . . 45,000 September . . . . . . . . 60,000 October . . . ....

Balance sheet, Cash flow, Contribution margin 1030  Words | 5  Pages

### Cost Benefit Analysis

problem. An organization lost 125 employees last year, at a cost of \$5,000.00 each. (Value is derived from cost to rehire and fill opening, as well as lost investment in the employee.) You suggest that a one-time investment in a training program (costing \$250,000 up front) will reduce turnover by 50%. Calculate the following numbers using historical figures as your assumptions. a. Total savings that the program stands to create Total Cost of the lost employee training= (125*\$5000) =\$625000 Total savings=...

Cost, Cost-benefit analysis, Costs 539  Words | 4  Pages

### Capacity: Costs and Rs

00. The costs for each proposal are shown below: |Amounts are in Rs. |PROPOSAL A |PROPOSAL B | |FIXED COSTS |50,000 |70,000 | |VARIABLE COST |12.00 |10.00 | a. What is the break-even point in units...

Cost, Costs, Economics of production 566  Words | 3  Pages

### Cost Volume Profit Analysis

COST-VOLUME PROFIT (CVP) ANALYSIS This is a technique used for planning short-term run profits by finding the relationship between profits and factors that influence profits. The following factors are taken to be influencing profits:- • Selling price • Variable cost of production • Fixed costs • Activity level (production and sales units) Profit planning is based on break-even analysis and can be worked out using either; a) Algebraic method b) Contribution method c) Break-even...

Cost, Cost accounting, Costs 1356  Words | 7  Pages

### Cost Volume Profit and Balanced Scorecard

﻿CHAPTER 4 : COST-VOLUME-PROFIT ANALYSIS : A MANAGERIAL PLANNING TOOL SUMMARY Cost-Volume-Profit analysis estimates how changes in costs (both variable and fixed), sales volume, and price affect a company’s profit. CVP is a powerful tool for planning and decision making. Operating Income = Total revenue – Total Expense Contribution margin is the difference between sales and variable expense. It is the amount of sales revenue left over after all the variable expenses are covered that can be used...

Contribution margin, Costs, Fixed cost 661  Words | 3  Pages

### Cost Behavior Defined

﻿I. Cost behavior defined Module 4 Review Questions The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column, write the letter of the cost best described by the definition. A. Curvilinear cost B. Step-wise cost C. Fixed cost D. Mixed cost E. Variable cost F. Total Cost ___E_1. This cost increases in direct proportion to increases in volume; its amount is constant for each unit...

Contribution margin, Cost, Costs 814  Words | 5  Pages

### Accounting: Variable Cost and New Equipment

follows. Cost Items and Account Balances \$ Administrative salaries 15,500 Advertising for helmets 11,000 Cash , December 1 0 Depreciation – Factory Building 1,500 Depreciation – Office Equipment 800 Insurance – Factory Building 1,500 Miscellaneous expenses - Factory 1,000 Office supplies expense 300 Professional Fees 500 Property Taxes - Factory Building 400 Raw material used 70,000 Rent on production equipment 6,000 Research & development 10,000 Sales commission 40,000 Utility Costs - Factory...

Contribution margin, Cost, Costs 665  Words | 4  Pages

### Variable Cost and Total Revenue Function

independent variables. (2) Assume that the salesperson in Example 1 (page 177) has a salary goal of \$800 per week. If product B is not available one week, how many units of product A must be sold to meet the salary goal? If product A is unavailable, how many units be sold of product B? (3) Assume in Example 1 (page 177) that the salesperson receives a bonus when combined sales from the two products exceed 80 units. The bonus is \$2.50 per unit for each unit over 80. With this incentive program, the...

Automobile, Costs, Fixed cost 781  Words | 3  Pages

### break-even analysis p15-32

and psychiatry. Melford charges each separate entity for patients' services (meals and laundry) and for administrative services (billing and collection). Space and bed rentals are fixed charges for the year, based on bed capacity rented to each entity. For the year ended June 30, 2011, Melford charged the following costs to Pediatrics: In addition to the above charges from Melford, pediatrics incurred annual salaries of \$480,000 paid for supervising nurses, nurses, and assistants. During...

Contribution margin, Cost, Costs 584  Words | 3  Pages

### One Hundred Cost Term in Accounting

100 Costs term 1. Absorption costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished unit of product. 2. Administrative costs are all executive, organizational, and clerical costs associated with the general management of an organization rather than with manufacturing, marketing, or selling. 3. Allocation base is a measure of activity such as direct labor-hours or machine-hours...

Contribution margin, Cost, Costs 2246  Words | 6  Pages

### Cost Analysis Overview

the competitors’ actions through pricing or providing substitute goods and lastly the cost through affecting the supply (Horngren et al., 2003). Though the most important factor in setting the profit-maximizing sales price is the elasticity of demand in the market, cost of producing the goods or service determines whether or not a company wants to sell at the market price. Without an accurate allocation of costs to products/services, the company could not consistently make economically sound, fact-based...

Contribution margin, Cost, Cost accounting 1457  Words | 6  Pages

### Cost

TYPES OF COSTS Introduction :-Production is the result of services rendered by various factors of production.The producer or firm has to make payments for this factor services. From the point of view of the factor inputs it is called ‘factor income’ while for the firm it is ‘factor  payment’, or cost of inputs.Generally, the term cost of production refers to the ‘money expenses’ incurredin the production of a commodity. But money expenses are not the only expensesincurred on the production...

Cost, Costs, Economic cost 1585  Words | 5  Pages

### An Approach to Manage the Supply Chain to Maximize Profit and Minimize Cost

Break-Even Analysis BreakEven Point: The volume at which total revenues equal total costs. Break-Even Analysis: To evaluate an idea for a new service or product, or to assess the performance of an existing one, determining the volume of sales at which the service at which the service o product breaks even is useful. Use of this technique is known as break-even analysis. The Break-Even analysis can be used to compare processes by finding the volume at which two different processes have equal...

Contribution margin, Cost, Costs 1109  Words | 4  Pages