break-even point in passengers and revenues per month? First we have to figure out the contribution Margin = Sales per fare – variable expense per unit: $160.00 - $70.00 = $90.00 (Contribution Margin. Break Even point in passengers= Fixed costs (divided) contribution Margin: $3‚150‚000 / $90 = 35‚000 passengers. Break-even point in revenues per month = Fare sales to breakeven (X) Sales per unit. 35‚000 x $160 = $5‚600‚000 • What is the break-even point in number
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location alternatives: 1. Location Cost-Volume-Profit Analysis: 1. The Cost-Volume-Profit (CVP) Analysis can be represented either mathematically or graphically. It involves three steps: 1) For each location alternative‚ determine the fixed and variable costs‚ 2) For all locations‚ plot the total-cost lines on the same
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value and be accepting of the $900 price. Cost Using the equipment CMI currently has in place pads can be produced at a variable cost of $44.44 for an 11.5 inch pad. Fixed costs for labor and equipment equal $28.80. The company prefers to consider fixed cost at an amount 360% of labor to account for engineering changing the fixed amount to 103.68. The accounting policy will not accurately reflect the engineering work required to create the pads and could be reconsidered. The pads will subsidize
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can identify any mechanical problems as they arise. This would also help to provide progressively higher levels of customer service. The lease arrangement would consistently be a lower cost option for CBN than purchasing new locomotives. This would help with some of the fixed cost associated with the railways. A variable cost that would be affected by the leasing of the equipment would be labor. Labor cost is the largest single element of variable cost for railroads. Although‚ CBN would be leasing the locomotives t
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$113‚800.00 $409‚680.00 $273‚120.00 Variable expense $120‚262.50 $53‚450.00 $192‚420.00 $128‚280.00 Sales commission $- $- $61‚452.00 $40‚968.00 Total CM $135‚787.50 $60‚350.00 $155‚808.00 $103‚872.00 Total fixed expense $94‚333.30 $94‚333.30 $15‚920.00 $15‚920.00 Operating income $41‚454.20 $(33‚983.30) $139‚888.00 $87‚952.00 Based on both qualitative and quantitative analysis‚ Foxy should hire sales representatives in the key fashion
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* a. Choose the income statement of particular year. * b. Split up costs in fixed and variable the best you can. * c. Look for an average price per motor bike to determine how many bikes Envy Rides has sold. * d. Calculate the variable cost per cycle sold‚ and assume it is constant. * e. Draw graph with MC-curve (at the level of the variable cost per cycle)‚ and the average total costs curve. * f. Be sure to have number of cycles sold on the horizontal axis. Income
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require the activity for production. 2). The methods are the following: Account analysis- This is the most common approach and it requires that an experienced person reviews the appropriate accounts and determine whether the costs in each account are fixed or variable. High-low method- Accountants who use this approach are looking for a quick and easy way to estimate costs‚ and will follow up their analysis with other more accurate techniques. The high-low method uses historical information from several
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Direct labor + Manufacturing overhead = $29‚000 + $21‚000 = $50‚000 | (1) | 5. | Which of the following statements regarding fixed costs is incorrect? | Expressing fixed costs on a per unit basis usually is the best approach for decision making. | | Fixed costs expressed on a per unit basis will decrease with increases in activity. | | Total fixed
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overapplied 2. Axle and Wheel Manufacturing currently produces 1‚000 axles per month. The following per unit data apply for sales to the regular 1‚000 customers: Direct materials $200 Direct manufacturing labor 30 Variable manufacturing overhead 60 Fixed manufacturing overhead 40 Total manufacturing costs $330 The plant has capacity for 2‚000 axles. What would be the total cost of producing 1‚500 axles? A) $495‚000 B) $375‚000 C) $330‚000 D) $475‚000 [($200 + $30 + $60) × 1‚500 units] + ($40 x
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Chapter 01 : INTRODUCTION TO P & O MGMT Concept of Production Production : * A crucial function in any organisation * Transformation of a range of inputs into the planned outputs ( goods or services ) meeting laid down quality standards * Step-by-step conversion of one form of material into another form through chemical or mechanical process to enhance the utility of the product to the end users. * Value addition process at each stage * A process by which “goods and
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