"Fixed Cost" Essays and Research Papers

Fixed Cost

Courier Pak. The objective value or true economic value offered by the Courier Pak is higher because the customer in this case cares most for reliable and timely shipping of documents. This is not a price sensitive customer and in most cases the cost of the shipment would be borne by the company. On these two parameters of reliability and timely shipping of documents Federal Express was rated 93% on performance as against 42% which is the most recognized brand. Another advantage that Federal...

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Poter's Five Forces Model E-Commerce

close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand).  buyer propensity to substitute  relative price performance of substitutes  buyer switching costs  perceived level of product differentiation The threat of the entry of new competitors Profitable markets that yield high returns will draw firms. This results in many new entrants, which will effectively decrease profitability. Unless the...

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Consumer Behviour of Pizza - a Study

component of cost is fixed cost. Sunk costs are fairly low because pizza ovens, chairs, tables, dishes and other items used in pizzerias can be resold if the pizzeria goes out of business. Variable costs are also fairly low- mainly the ingredients for pizza (flour, Tomato sauce, cheese, and pepperoni of a typical large pizza might cost Rs. 5 or Rs. 10) and perhaps wages for a couple of workers to help produce, serve, and deliver pizzas. Most of the cost is fixed- the opportunity cost of the owner’s...

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Business Plan Evaluation

Magnolia Inn should have a winning strategy to gain its fair share of the market. The Vette Kat Harbour Bed & Breakfast – 4.5 The Magnolia Inn – 3.5 Finance The Vette Kat Harbour Bed & Breakfast has low monthly fixed costs ($1642), and variable costs at 10% of sales. With low fixed costs, the bed & breakfast will be capable of generating profits faster. The business projects a capacity to repay $7200 of the principal on its liabilities each year. The business estimates an extremely high current ratio...

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Karaoke: Teaching the World to Sing

competitors so the possible market can be easily penetrated Work Against Karaoke box buildings must be enough big to have enough rooms but rents or prices for buildings in major Italian cities are extremely high. 1 m2 costs 3500 € in average in Milan High costs of karaoke systems and high fixed costs for buildings Competitiv e Regulatory Economic There are high entry barriers in the entertainment sector like cinema, soccer, clubs, theme parks and social inertia on this different activity(karaoke)...

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Problem Statement: Kudler Fine Foods

ordered correctly. At this current time there is the opportunity to reduce this responsibility by either hiring someone to help with purchasing and inventory levels or training other managers to use an automated system. Both options would render some costs, but to implement an automated system will save time and reduce mistakes for the organization. An automated inventory and ordering system would be a significant to a new management approach at KFF. This part of the business has always been managed...

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Barriers to Entry and Husky

market, PET perform molding systems at the right time helped husky to become a dominant player in the market. The industry was determined to be competitive with a fair amount of rivalry based on barriers to exit, market growth, strategic costs and high fixed costs. (Exhibit 1). Husky's raw materials were obtained at mostly competitive prices, while some specialized materials were provided by only a few companies and it ‘relied almost entirely on outside vendors for most of its components. This would...

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A Look at Sony's Decline

strategy, left them with a bloated workforce of more than 168,200 people word wide, which in turn leaves a toll on the company's fixed costs. As conditions in the economic climate gradually evolved, the Japanese Yen slowly and steadily gained strength as compared to the dollar. This made Sony's products more expensive. Couple this with emerging markets offering cheaper labor costs (such as China and South Korea) and the entry of other firms that identified the economic profit and opportunities that Sony...

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Cox Communications Case Study

Cox Enterprise Inc. which operates in the cable television business in 9 US states, and 2/3 of which is owned by the Cox family through CEI. The industry was characterized by significant economies of scale at local levels (very high fixed costs and very low variable costs) and national levels, given increased bargaining power. These factors led to very strong industry consolidation activity at the turn of the century, with 70% of the market predicted to be held by 5 top players in four years. This made...

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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...

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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...

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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...

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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...

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Cost Classifications

Level Material Cost Classifications Consult Ch. 6 & 7 of Health Care Finance and other sources to complete the form. This worksheet requires you to match the definitions and examples of types of cost, and the types of centers where costs occur. Part 1: For each term in Column A, select the correct definition from Column B on the right. Write the corresponding letter of the definition next to the term. |Column A | |F |Indirect costs ...

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Variable Cost and Contribution Margin

Payable 1,130 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...

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Supply Chain Management

of safety stock? 2 3. Recommend quantitative target inventory levels for the six European options, assuming a weekly periodic review replenishment. 4 4. Assuming a 20% gross margin for each printer, sea transportation costs of $1 per printer and air transportation costs of $10 per printer (air shipment lead-time is three days), evaluate the various alternatives available to Brent Cartier to address the inventory and service problem. 6 5. Bibliography 8 1. What has caused the so-called...

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Porters 5 Forces

include: Existing loyalty to major brands Incentives for using a particular buyer (such as frequent shopper programs) High fixed costs Scarcity of resources Government restrictions or legislation Entry protection (patents, rights, etc.) Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Absolute cost advantages Learning curve advantages Expected retaliation by incumbents Michael Porter’s Factor 2) Power of Suppliers ...

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Cost Control and Cost Reduction

PRINCIPLES OF COST CONTROL 1.1 Introduction Cost is important to all industry. Costs can be divided into two general classes; absolute costs and relative costs. Absolute cost measures the loss in value of assets. Relative cost involves a comparison between the chosen course of action and the course of action that was rejected. This cost of the alternative action - the action not taken - is often called the "opportunity cost". The accountant is primarily concerned with the absolute cost. However,...

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The Beach Carrier

basis of her analysis as she is highly focused on simply funding the fixed costs for the first phase (3 month period) of the rollout for the mail-order program. While the overall concept of the rollout plan is an excellent example of experimentation and risk-mitigation, this level of funding is insufficient to support the Beach Carrier launch as planned. First of all, funding in this range is only focused on covering the fixed costs for the first three months of the roll-out. It does not include any...

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Porters Five Forces Amazon

such things as an established sales force or access to existing channels, reducing barriers to entry (Porter, 2001) - Economies of scale: In some industries, economies of scale are extremely important. However, startup costs for e commerce retail operation are a fraction of the costs of starting a traditional brick and mortar company. - Access to industry distribution channels: In many industries manufacturers have had control over supply and/or distribution channels. In the online retain industry...

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Yield Management

2003). Companies applying yield management can be from different industries, but they must meet several conditions to apply. Those conditions are as follows: 1. relatively fixed capacity 2. predictable demand 3. perishable inventory 4. appropriate cost and pricing structure 5. time-variable demand 1. Relatively Fixed Capacity1 Yield management is appropriate for service firms that have constrained capacity because firms not constraint by capacity can change their inventory according to...

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Inventory and Private Warehousing

point-of-sale displays are created and produced. 4. What are the advantages and disadvantages of private warehousing? One disadvantage to private warehousing is that they are characterized by high fixed costs—which necessitates high and steady demand volumes. In addition, a high fixed cost alternative becomes less attractive in times of high interest rates because it is more costly to secure the necessary financing. Private warehousing may also reduce an organization’s flexibility with respect...

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Acid Rain Case

by the energy from the burning coal. Adjacent turbines converted the energy in the steam to mechanical energy, which was then converted to electrical energy in the plant's generators. Large coal-fired plants like Bowen had high fixed costs but relatively low variable costs and were designed to operate continuously. Utilities used them for baseload generation, supplementing the energy from the coal plants with power from oil- or gasfired plants to meet peak demands. Running the Bowen plant was an operation...

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Basic Manufacturing Cost Categories

manufacturing cost categories: Direct Materials Cost: The materials that go into final product are called raw materials. Direct Labor Cost: The term direct labor is reserved for those labor costs that can be essentially traced to individual units of products. Direct labor is sometime called touch labor, since direct labor workers typically touch the product while it is being made. Manufacturing Overhead Cost: Manufacturing overhead, the third element of manufacturing cost, includes all costs of manufacturing...

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External and Internal Analysis of Foxconn

manufacturing countries. In the future, the company will see a political trend that the developing countries as well as the purchasing countries will pay more attention to labor working conditions and environments. This will increase the production cost since the company needs to spend more money taking care of employees and environments. Economic: Business is always influenced by the changes in economy. Inflation, interest rate, and foreign exchange rates will contribute to a business’s outlook...

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Term Paper

sports segment and competing as a focussed differentiator. The logic of the turnaround can be conceptualised as follows (a) Ducati reduced costs without affecting the WTP for the physical product (i.e. the quality and reliability of the product has increased despite reduced costs). Major reductions were in motorcycle material costs (from 68.2% to 59% of unit costs, exhibit 12) and can be attributed to the following factors: (1) rationalised suppliers from 200 to 130 with the effect of increasing the...

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Casestudy

stations are in Chicago? Market Sizing – determine the size and attributes of a market for a product Page 4 © 1999 The Johnson School Consulting Club BIG RED CASE BOOK      Profit/Losses – analyze changes in profitability, revenues and costs JOHNSON SCHOOL CONSULTING CLUB Stagnant sales or growth – analyze sales drivers, such as changes in the market Business operations – analyze how specific activities affect other business processes Make or Buy Decisions – analyze whether or not...

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Lovelock06 Tif

intangibly (b; Challenging; p. 162) 7. ____________ outside peak demand periods poses a serious problem for service industries with ____________, like hotels. a. Low demand; high fixed costs b. Low demand; low fixed costs c. High demand; high fixed costs d. High demand; low fixed costs e. High demand; low variable costs (a; Challenging; p. 163) 8. Which of the following represents a broad target audience category? a. Donors b. Competitors c. Employees d. Contractors e. Franchisers (c; Moderate;...

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Cost Behaviour

have a sound knowledge of cost behaviour ie fixed costs, variable costs, semi-variable costs and sunk costs. Answer: Understanding cost behaviour helps manager in anticipation of changes in cost when there is a change in their activities like production, sales, inventory pile up etc. It provides good assistance in planning, cost management and decision making. A number of behaviour patterns exist ranging from fixed to variable and from linear to curvilinear. Many cost predictions techniques are...

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Botton Village: Case Study

bottom line’ strategies increases propensity for corporate donations (O6) | Weaknesses | Threats | * Restricted geography limits expansion of Botton Village (W1) * Limited expertise in interpreting results of market research (W2) * High fixed costs (W3) * Existing investment opportunities provides less return on investment that previously (W4) * Hesitance from existing donors to donate to Camphill communities in lieu of Botton Village (W5) | * Increasing mail-outs from newly established...

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Costs and Direct Cost

Business (UKM-GSB-LHDN) Cost Classification: Government Agency PROBLEM 2-56 The Department of Natural Resources is responsible for maintaining the state’s parks and forest lands, stocking the lakes and rivers with fish, and generally overseeing the protection of the environment. Several cost incurred by the agency are listed below. For each cost, indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. The Answers...

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Annual cost

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 cost of $ 200,000. Each drum manufactured costs $ 160 to produce and...

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Costs and Direct Labor Cost

following data have been recorded for recently completed Job 501 on its job cost sheet. Direct materials cost was $3,067. A total of 30 direct labor-hours and 104 machine-hours were worked on the job. The direct labor wage rate is $12 per labor-hour. The company applies manufacturing overhead on the basis of machinehours. The predetermined overhead rate is $11 per machine-hour. The total cost for the job on its job cost sheet would be: A. $4,571 B. $3,757 C. $3,090 D. $3,427 Applied manufacturing...

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Costs and Net Operating Income

report appears below: Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $135 per exchange completed on the planning budget; whereas, the average actual office expense is $112 per exchange completed. Legal and search fees is a variable cost; office expenses is a mixed cost; and equipment depreciation, rent, and insurance are fixed costs. In the planning budget, the fixed component of office expenses was $5,200. All of the...

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Costs and Coffee Average Cost

Classify each cost listed below as either a product cost or a period cost for purposes of preparing the financial statements for the bank. 1. The cost of the memory chips used in radar set. * Product Cost 2. Factory Heating Cost * Period Cost 3. Factory Equipment maintenance costs. * Period Cost 4. Training costs for new administrative employees * Period Costs 5. The cost of the solder that is used in assembling the radar sets. * Product costs 6. The Travel...

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Variable Costs

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, labor rate and usage (efficiency)...

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Fixed Costs, Variable Costs, and Bep

Fixed Costs, Variable costs, and Break Even Point Elizabeth Gaud HSM /260 August 21, 2011 Stephanie Koontz Fixed Costs, Variable costs, and 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? Answer: ...

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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...

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Cost Is Fixed Cost or Variable Cost in Nature?

Is depreciation expense or depreciation cost is fixed cost or variable cost in nature? Fixed costs: Fixed costs are such costs that do not change with the change in activity level within the relevant range. Where relevant range can be defined in terms of time or activity level. Variable costs: Variable costs are such costs that change with the change in activity level . Coming to the question, depreciation expense or depreciation cost can either be fixed or variable and this depends on the method...

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Explain the difference between fixed costs, semi-fixed costs, and variable costs.

Question 5.1 Explain the difference between fixed costs, semi-fixed costs, and variable costs. Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line depreciation expense, etc. Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line...

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Cost Production and Types of Cost

Generally, the term cost of production refers to the ‘money expenses’ incurred in the production of a commodity. But money expenses are not the only expenses incurred on the production of a commodity. There are number of services and inputs such as entrepreneurship, land, capital etc., which are offered by an entrepreneur without changing any price or receiving any payment for them. While computing the total cost of production, allowance should be made for such expenses. It is therefore essential...

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Cost Accounting

COST ACCOUNTING M.ASAD ABBAS PAF KIET TABLE OF CONTENTS   Executive Summary ......................................................................................................3  Introduction .....................................................................................................................4 Costing Strategy of Vesta Apparel.............................................................................5  Full Cost of the Primary...

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Allocation of Fixed Costs

Allocation of Fixed Costs ACC 403 Principles of Accounting The articles describe two different approaches:  Lean accounting and activity based costing.  Both have pros and cons and the selection of "what is best for allocating IT" likely rests with the culture and types of businesses.  I personally believe that activity-based costing, which essentially casts IT as a variable cost, making users sensitive to the requests they make of IT because every request is an incremental cost to their budget...

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Cost Behavior Analysis

Types of Costs by Behavior Cost behavior refers to the way different types of production costs change when there is a change in level of production. There are three main types of costs according to their behavior: Fixed Costs: Fixed costs are those which do not change with the level of activity within the relevant range. These costs will incur even if no units are produced. For example rent expense, straight-line depreciation expense, etc. Fixed cost per unit decreases with increase in production...

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Cost Accounting

of per Unit Total Costs. The estimated unit costs for Hoteling Industries, when operating at a production and sales level of 10,000 units, are as follows: Cost Item Estimated Unit Cost Direct materials $15 Direct labor 10 Variable factory overhead 8 Fixed factory overhead 5 Variable marketing 4 Fixed marketing 3 Required: (1) Identify the estimated conversion cost per unit. (2) Identify the estimated prime cost per unit. (3) Determine the estimated total variable cost per unit. (4) Compute...

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Business Com

cities/towns across USA Online retailing b. 1.3 Company Data a. FY2012 i. No. of Stores – 500 ii. No. of Employees – 50000 iii. No. of Warehouses – 50 (almost one for every state) 2. Vision & Objectives 2.1 Vision Continuous innovation, cost optimization, and growth to better serve and satisfy customers 2.2 Objectives a. FY2013 i. Establish a unique positioning in the industry ii. Profit margin (based on PBT) – 20% iii. Keep sales intact i.e. no growth, no decline b. FY2020 i. Annual Sales...

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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...

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BASF Marketing Plan in Tashkent

in European and Asian markets. Agency provides full technical and consultancy support (customer consulting ch14) in question of application WPK. BASF UZ also is offering solutions in construction industry. Due to BASF innovations - lifetime, safety, cost and design of constructions which use BASF productions can be improved. BASF UZ has to be a leader and innovator in these areas in Central Asia market, so it needs good marketing support. The Company analyses local market, by identifying customers...

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Greener Pastures

product to the consumer market, HydroCan is capable of producing 216,000 bags a year. At $22.50 a bag the company has a sales potential of $4,860,000. Considering a 52% variable cost per bag gives an overall gross revenue potential of $2,332,800. The total fixed costs to run the yearly operations total $813,200, and other costs, including partner and sales employee salaries total $1,681,000. This brings the total expenses to $2,494,200, surpassing the amount of potential sales available in this market...

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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. ...

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Figuring Fixed Costs

 Figuring “fixed costs, variable costs, and” (Oppapers.com, 2012) BEP Week 4 Tina Whittington HSM/260 May 11, 2014 Laura Huffaker Figuring fixed costs, variable costs, and BEP Week 4 10.1 The highest number of meals served was 4,900 in December, with the lowest of meals being 3,500 in July making a difference of 1,400 of meals served, between the two months. The cost per meal variable is 1400÷$5500.00 for a total of $3.93 (WHDM’s) fixed cost is computed as follows $20,500.00-(3...

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Starbucks Case Study

misrepresentation because of resource allocation. While their short term fixed costs of infrastructure and labor were solved, their reserved and recurring allocation towards the upgrades of their infrastructure lacked significantly. If properly funded before and seen ahead of the curve, their growth could have been anticipated. This is evident through the need to shut down and retrain employees. It’s clear that the total fixed and variable costs exceeded their revenue initially. Like all companies, there was...

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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...

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Cost Volume Profit Formula

Cost, Volume, and Profit Formulas Heather Jauregui University of Phoenix of Axia College “The Cost-volume-profit (CVP) analysis is the study of the effects of changes in costs and volume on a company’s profits.” (Kimmel, P., Weygandt, J., & Kieso, D. 2003) The analysis is used to maximize efficiency in a business. In order to be effective the CVP analysis has to make several assumptions. These assumptions are that the costs can be fitted into either fixed or variable categories. The...

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Ace Case Study

explained that outsource facility management can help company add value by increasing staff’s focus and flexibility. Reiss (2010) also suggested outsourcing can turn fixed costs into variable costs. However, variable costs happened only when you make a sale, in this case, only when you need service. So outsourcing can help company reduce costs. ACE outsourced its facility management to “FM Services”. It set up a central services team consist of one contract manager and three assistants, and it located...

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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...

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cost accounting 2

1/ Variable Costs: The variable cost will be 40% higher [ an increase of 21,000 - 15,000=6,000 units] Direct Material used 1,060,000 Variable Costs: Direct Labor 1,904,000 Direct material used [ 1,060,000 *1.4] 1,484,000 Unit costs [ 6,335,600 / 21,000] =$ 301.7 Indirect Materials and supplies 247,000 Direct Labor [ 1,904,000 * 1.4] 2,665,600 Variable Cost/ Unit = 228.27 at both 15k & 21k units Power to run plant eqip 213,000 Indirect Materials...

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Reebok Swot

year period required for a start-up retailer. Our sales projections are conservative. Pro Forma Profit and Loss | | Year 1 | Year 2 | Year 3 | Sales | $450,000 | $600,000 | $700,000 | Direct Cost of Sales | $247,500 | $330,000 | $385,000 | Other | $9,000 | $12,000 | $14,000 | Total Cost of Sales | $256,500 | $342,000 | $399,000 | Gross Margin | $193,500 | $258,000 | $301,000 | Gross Margin % | 43.00% | 43.00% | 43.00% | Expenses | | | | Payroll | $59,168 | $67,500 | $75,425...

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Cost Analysis

COST ANALYSIS Prepared by: Nebuchadnezzar Rabaya OBJECTIVES To provide a basic understanding of the nature of cost analysis. To give highlights on the importance of cost analysis on any venture.  To present a clear overview on various types of costs. Cost Definition: an amount that has to be paid or spent to buy or obtain something. Analysis Definition: is the process of breaking a complex topic or substance into smaller parts to gain a better understanding of it. What is cost analysis...

Premium Cost, Costs, Fixed cost 587  Words | 22  Pages

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Variable Cost and Points Question

Question 1 1.   Mrs. Granberry is going to sell Christmas tree lights 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...

Premium Contribution margin, Cost, Costs 1238  Words | 7  Pages

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