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
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BUSINESS MATHEMATICS: ASSIGNMENT - “Section” 5.1‚ page 182. (1) Write the general form of a linear function involving five independent variables. (2) Assume that the salesperson in Example 1 (page 177) has a salary goal of $800 per week. If product B is not available one week‚ how many units of product A must be sold to meet the salary goal? If product A is unavailable‚ how many units be sold of product B? (3) Assume in Example 1 (page 177) that the salesperson receives a bonus when combined
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What do your overall assessment of Ryanair’s strategy? Although the strategy of Ryanair seems sound‚ I don’t expect it to succeed on the Dublin-London route. By matching service and amenities but pricing well below Air Lingus and BA‚ Ryanair stands to steal customers up to capacity of it’s 44-seat turboprop 4 times a day. This loss of customers‚ though small at this point‚ could likely elicit a strong response from both AL and BA. The Dublin-London route represents one of the few lucrative routes
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Waterways Continuing Problem 1 Waterways Continuing Problem WCP1 Waterways Corporation is a private corporation formed for the purpose of providing the products and the services needed to irrigate farms‚ parks‚ commercial projects‚ and private homes. It has a centrally located factory in a U.S. city that manufactures the products it markets to retail outlets across the nation. It also maintains a division that provides installation and warranty servicing in six metropolitan areas. The mission
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has 1- the greater fixed costs? 2- The greater variable cost rate? 3-The greater per unit revenue? 1- B 2- B 3- A b. Which provider ha the greater contribution margin? B c. Which provider needs the higher volume to break even? A d. How would the graphs below change if the providers were operating in a discounted fee-for-service environment? In a capitated environment Revenue and Costs ($) Total Costs Loss
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Ryanair Case Analysis 1. What is your assessment of Ryanair’s launch strategy? Was it a good strategy? In your answer consider potential market demand‚ pricing and Ryanair’s likely cost structure. After having grown up in the airline industry‚ the Ryan brothers proved they were able to operate a scheduled airline successfully with their 14 seat flights between southeast Ireland and a secondary London airport. Their strategy was to expand to the Dublin-London route‚ a known lucrative route for
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To: Patrick Oray Company: Plastic Composites Inc. From: Jane Doe Date: March 1‚ 2012 RE: Allocation Options for Fixed Manufacturing Overhead Costs Dear Mr. Oray‚ After researching the different methods allowed for you to use in allocating the fixed manufacturing costs to the work in process and finished goods I have come to the conclusion that normal capacity is the best method for your business. First I will define theoretical‚ practical and normal capacity and then I will explain to
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Master’s thesis M.Sc. in EU Business & Law An analysis of the European low fare airline industry - with focus on Ryanair Student: Thomas C. Sørensen Student number: 256487 Academic advisor: Philipp Schröder Aarhus School of Business September 13‚ 2005 1 Table of contents 1. Introduction 1.1. Preface 1.2. Research problem 1.3. Problem formulation 1.4. Delimitation 6 6 7 7 2. Science and methodology approach 2.1. Approaches to science 2.1.1. Ontology 2.1.1.1. Objectivism 2.1.1.2. Constructivism
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Introduction Ryanair is an airline with the straight of low fare. Ryanair operate over 1500 flights per day from 51 bases‚ across 28 countries. The firm has over 1‚500 routes‚ connecting 168 destinations. Ryanair has 290 new Beoing 737-800. They plan to buy a further 13 new aircraft. Ryanair has the average youngest aircraft group in the Europe. The firm runs with more than 8500 employees. First part of the report is analysing the external environment of airline industry through the model of
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The average variable cost (AVC) in the short run and long run is ‘U’ shaped. Average variable cost is the total variable cost per unit of output‚ found by dividing total variable cost by the quantity of output. Thus if a firm produces X2 units of a commodity at a total variable cost of TVx2 the AVC of producing these two units of output is given as Average variable cost decreases with additional production at relatively small quantities of output and then eventually increases with relatively
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