Through our study of Salem Telephone Company (STC)‚ we’re going to analyze whether or not Salem Data Services (SDS) will be a profitable business to keep. We will do so by utilizing break even analysis. Before we can find our solution‚ we should discuss Salem Data Services’ (SDS) accounting report step by step. To begin‚ the various costs incurred to SDS should be grouped into either variable‚ or fixed. The only variable costs that have any relation to the total revenue hours listed from exhibit
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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 the year ending in June 30‚ 2011‚ pediatrics charged each patient $300 per day‚ had a capacity of 60 beds
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1. What is Mountain Man Brewing Company’s positioning relative to its competitors? Mountain Man Brewing Company (MMBC) is a 2nd tier domestic beer manufacturer based out of West Virginia. MMBC is positioned as a leader among local brewers in the East Central region‚ being one of the four regional breweries still operational in West Virginia. MMBC brews only one type of beer – the Mountain Man Lager‚ a dark bitter tasting beer. Target market for the product is middle aged men from the blue collared
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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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FIN 200 RE: Break Even Analysis A. What is the break-even point in bags? Formula: FC/P – VC $80‚000/$10-5 (0.10 x 50 lbs = $5.00) $80‚000/$5 Break-Even Point would be $16‚000 B. Calculate the profit or loss on 12‚000 bags and on 25‚000 bags 12‚000 bags 12‚000 x $10 = 120‚000 80‚000/$5 x 12‚000 = $80‚000 + $60‚000 = $140‚000 120‚000 – 140‚000 = -20‚000 loss 25‚000 bags 25‚000 x $10 = 250‚000 80‚000/$5 x 25‚000= 80‚000 + 125‚000 = 205‚000 250‚000 – 205‚000 = 45‚000
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Also‚ previously mentioned was that the break-even analysis received it’s named due to fact that the expected profit happens to equal to zero and the total revenue also equals the total costs (Cleverley‚ Cleverley‚ & Song‚ 2012). In order to determine a profit‚ the net income must exceed the total costs. There is no profit unless the revenue exceeds the costs. Any amount of output over the break-even point will be considered as a profit. The original net income profit
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| |MKT4415B | |Mountain Man Brewing Company: Bringing the Brand to Light | |
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Mountain Man Brewing Company | To: | Chris Prangel | From: | 001706975 | CC: | David Nasser | Date: | 3/4/2013 | Re: | Bringing the Brand to Light | Comments: | For the first time in the company’s history‚ Mountain Man Brewing Company is experiencing declining sales in response to changes in beer drinkers’ preferences. Mr. Prangel’s response to this problem is introducing a “light beer” form of the popular Lager. In the past six years‚ the “light beer” industry as increased at an annual
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MKTG324 Wenjing Xu Mountain Man Brewing Company Case Analysis Company Overview Mountain Man Brewing Company produces Mountain Man Lager; the most authentic regional beer for working class East Central Americans‚ among all premium domestic beers‚ because of its distinctive quality‚ bitter flavor‚ slightly higher than average alcohol content and competitive price . MMBC targeted its product toward the middle-aged blue collar worker in the East Central region. MMBC’s strategic focus on this
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Mountain Man Brewing Company TABLE OF CONTENTS COMPANY ANALYSIS .................................................................................. 3 OUR DECISION ............................................................................................. 7 FORECASTS AND ESTIMATES ................................................................. 8 BREAKEVEN ANALYSIS ........................................................................... 12 MARKET SUMMARY ...........................
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