Contents Case Context 1 Case Background 1 Cost-Volume-Profit Analysis 1 Point of View 1 Problem Statement 1 Areas of Consideration 2 The Breakeven Point 2 Implicit Assumptions and Limitations 2 Per Product versus Aggregate Breakeven Point 2 Change in Volume and Fixed Cost 3 Change in Product Mix and Sales Price 3 The Bonus Dividend Plan 3 Union Demand 4 Change in Product Emphasis 4 Recommendations 5 Revised CVP Income Statement 5 Required Levels of Operation 6 Case Context Case Background The case
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Iero 1) What assumptions are implicit in Mr. Thomas’s determination of a breakeven point? His first assumption Is that Abbington Youth Center‚ being a Non-profit organization‚ doesn’t need a profit‚ so he calculated the breakeven point with a profit that is equal to 0 ( total revenue=total costs). His second assumption is that he doesn’t take in consideration the differences among the three programs but he computes the breakeven point using the averages( fees per student and variable costs per student)
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President The following is a summary report to recommend whether Competition Bikes should change its traditional costing method to activity based costing‚ and an analysis of the breakeven point with regards to sales units and dollars for both CarbonLite and Titanium bikes. It also discusses the impacts to the breakeven point. The cost-volume-profit evaluation and the traditional vs activity based costing method overhead analysis were used for the review and analysis. Traditional Based Costing
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Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc386409319 \h 1Question 1: PAGEREF _Toc386409320 \h 2Question 2: PAGEREF _Toc386409321 \h 5Question 3: PAGEREF _Toc386409322 \h 7Question 4: PAGEREF _Toc386409323 \h 10QUESTION 5 PAGEREF _Toc386409324 \h 16Question 6 PAGEREF _Toc386409325 \h 18Conclusion PAGEREF _Toc386409326 \h 24Reference PAGEREF _Toc386409327 \h 25 IntroductionGEZ Bhd is a major oil company in Malaysia which was operated petrol stations under three basic concepts‚ namely
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1. What are the assumptions implicit in Bill French’s determination of his company’s breakeven point? There are a number of simplifying assumptions made by Bill French in his calculations of the breakeven point of his company‚ Duo – Products Corporation. First‚ he had assumed that the market conditions will remain the same. Second‚ his calculations are based on the last year prices; it does not take into account in any change in prices. Third‚ he also ignores any changes in the fixed and
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In proposal 2‚ an additional product W is added to the mix. So the fixed cost is increased. Although the fixed cost is increased‚ the profit increases sharply. What is noteworthy is that breakeven point is the largest in the 3 situations. It means that the company should take longer time to reach the breakeven point. So the company many have more risk. The recommendation is made on the basis that the company has the capacity to produce all products. The company should be confident that there has
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Business Decision Making Purely GR…8! Water Company Inc. Neal Steven 0310525 Tannys Laughren Monday‚ December 2nd‚ 2013 Executive Summary: The case about Purely Gr…8! Water Company Inc. revolves around the decision to expand to new markets‚ and the marketing overhaul that would need to take place if the company chose to expand. The main problem in this case is that Purely’s current marketing strategy isn’t suited for expansion‚ which is wanted by Romil Reyes‚ Vice President
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increases the company’s fixed costs dramatically. This will increase the company’s operating leverage and risk. 3-25 1a. Let Q denote the quantity of carpets sold Breakeven point under Option 1 $500Q $350Q = $5‚000 $150Q = $5‚000 Q = $5‚000 $150 = 34 carpets (rounded up) 1b. Breakeven point under Option 2 $500Q $350Q (0.10 $500Q) = 0 100Q = 0 Q = 0 2. Operating income under Option 1 = $150Q $5‚000 Operating income under Option 2 = $100Q
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Submitted by Yellow Team Eunice King Ronda Klassen Joshua Krupnick Larry McCraw Ronald Mills BUS 5431 Managerial Accounting Professor Nancy Shoemake April 18‚ 2010 1.0 Summary Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even
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Section 1 (Strategy)-Page 37‚38‚39 QUSETION 1 Average monthly productivity (units/hour) for the month of: |MONTHS |PRODUCTIVITY | |January |2300 / (325*3) = 2.36 | |February |1800/ (200*5) = 1.80 | |March |2800/ (400*4) = 1.75 | |April |3000/ (320*4) = 2.34 | Average Monthly Productivity= (2.36+1.80+1.75+2.34)/4 = 2.06 QUESTION 2 Productivity = sales
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