seats per passenger train car | |90 | |Average load factory (percentage of seats filled) |70% | |Average full passenger fare | | |$160 | |Average variable cost per passenger | |$70 | |Fixed operating cost per month | | |$3‚150‚000 | a. What is the break-even point in passengers
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CVP ANALYSIS / BREAK EVEN ANALYSIS Break-Even Analysis Introduction Break-Even Analysis-Volume-Analysis is a systematic method of examining the relationship between changes in volume (that is output) and changes in Sales Revenue‚ Express and Net Profit. As a model of these relationships‚ Break-Even Analysis simpifies the real-world conditions which a firm will face. The objective of Break-Even Analysis is to establish what will happen to the financial results if a specified level of activity
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1. In the excel worksheet‚ we combined the 12% non-callable bond maturing in May 05 and the zero coupon STRIPS with the same maturity to get a synthetic bond with semiannual interest payments of $4.125 per $100 par value. The ask and bid prices of the synthetic bond are calculated to be $98.78 and $98.53. Alternatively‚ we combined the non-callable bond maturing in 2000 and the STRIPS 00 to get a synthetic bond to match the callable bond if it was called at the first possible date. The ask and
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Undeniably‚ breaking even is not the ultimate goal of firms. Why then bother about the break-even analysis? THE IMPORTANT OF BREAK-EVEN ANALYSIS It is an undisputable fact that every business’ objective is to survive and make profit as compensation of being in existence. Frankly‚ predicting a precise amount of sales or profits is nearly impossible. No business aims at making losses whatsoever. Given this‚ a person starting a new business often asks‚ ‘’ At what level of sales will my company make
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the value of an individual’s property. In order to exercise this jurisdiction‚ the plaintiff must have seized and attached the property. In an effort to expand jurisdiction‚ the court instituted the minimum contacts test. This test was expanded by Hess v. Pawloski‚ when a Massachusetts court determined that due his activities within the state‚ a nonresident of Massachusetts was still subject to the court’s jurisdiction‚ regarding a suit for a traffic accident. The court held that use of a state’s
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PRACTICE QUESTIONS ON BREAK-EVEN ANALYSIS 1. A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives‚ A and B‚ have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $40‚000 for A and $30‚000 for B; variable costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and $16 for B. a) Determine each alternative’s break-even point in units. b) At what volume of
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Excel Assignment #2 Preparing a Contribution Margin Income Statement and Operating Leverage Summer 2013 1. Assume that a company is budgeting to sell 2‚500 units of a product at a selling price per unit of $32. The variable cost per unit is $26 and total fixed costs are $5‚000. REQUIRED Prepare a contribution margin income statement and calculate operating leverage. 2. Suppose the company is unsure exactly how many units they will sell. As such‚ their marketing department has provided
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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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recent decades when people were trying to erase Pereira’s work. In “Erasing Pereira”‚ Alan Hess gives his opinion while addressing‚ “What do California’s cultural institutions have against William Pereira?”. He begins his article by stating that Pereira had gained his name because of his work in the Orange County area‚ which later had been faded and people were misinterpreting the vision of the great architect. Hess says that Pereira had designed UC Irvine with meticulous planning and a very revolutionary
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system? MIS- adresses structured problems like‚fixed regularly scheduled reports based on data extracted and summarized from the firms underlying TPS. DSS- supports semi structured and unstructured problems. What if analysis. what are the three basic components of a DSS? Briefly describe each. The three basic components of a DSS include a DSS database‚ DSS software system‚ and DSS user interface. The DSS database is a collection of current or historical data from
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