|$18576 | |Variable cost per unit |$20 | |Contribution margin (return per unit-variable cost) |$80 | |Return per unit $100 |
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Statement gave the group confidence and they were committed to growing volume to generate a positive gross margin. But problems in cost calculation need to be tackled in order to generate the biggest profit. 2. The Issue: For the year ended June 30‚ 1999‚ Hollydazzle’s actual performance was as follows: It had 50‚000 transactions and revenues of $450‚000. The company’s actual gross margin was -$53‚500‚ or a unit cost of $-1.07. In this situation the Gross Profit is negative. 3. The questions/assumptions
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$825 + $420 + $275 = $2‚070 Total Variable Cost = $2‚070 x $3‚000 = $6‚210‚000.00 Unit Contribution Margin = Sales – Variable Cost = $4‚350 – $2‚070 = $2‚280 ii. Contribution Margin Ratio = Total Variable Cost Total Sales = $2‚280 x 3‚000 $4‚350 x 3‚000 = 0.524137 iii. Break even volume in units = Total Fixed Cost Unit Contribution Margin = $4‚290‚000 $2‚280 = 1‚881.578 = 1‚882 units iv. Break even in sales dollar =break even volume
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some of the pioneering work by gaining some freezer space in Boston supermarkets. It is possible that TPF may have to give up more than a 25% gross margin to get freezer space. Assuming that food brokers do get distribution into supermarkets‚ the following breakdown shows recommended selling prices (as well as‚ variable costs and contribution margins). Price to consumer: based on the notion that Show Circuit will be sold as a premium priced item
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small profit margin and low value-added business‚ painful for them as setting up Octopus raises extra cost.(hundreds monthly rent)The works or the owners are usually with low skill and education level‚ time cost and money cost may increases when they go learning of how to serve using Octopus machines and networks. It’s possible. 2.Transaction quantities/ volumes Large transaction quantities each day with really low absolute amount earned for each transactions and low profit margin. Painful for
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and future market growth of the product category. Not only the current growth is important‚ but growth projections over the horizon of the plan are also critical. Fast – growing categories are almost desired due to their abilities to achieve high margins and sustain profits in future years. It also has dynamic market structure in terms of competitors because large categories and fast growing also attract competitors. Slow market growth is an unattractive to the firm. Product Life Cycle Product
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CASE OVERVIEW The case is about Natureview Farms‚ Inc.‚ a small yogurt manufacturer that sold refrigerated cup yogurt developed from all natural ingredients. It has established a strong brand name known for its high quality and taste. The company produces 8-oz. cups‚ 32-oz. cups and multipack yogurt products in a variety of flavors. Currently it sold only through its established natural foods channel. Now‚ the management team of the company wants to find a strategy to grow its revenues to $20
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KRBL Analysis Report By‚ Team: Heretically Astute Members: Christy B
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Chapter 9: Budgeting Discussion Questions 9.1 State the different types of budgets that may be prepared. Different budgets include: sales or fees budget; operating expenses budget; production and inventory budgets; budgeted income; cash budget; budgeted balance sheet; and the capital budget. P9.7 Preparation of receipts from debtors schedule and cash budget Ken Martin‚ manager of Lonnie Car Repairers‚ has requested that you prepare a cash budget for the months of December and
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is relatively easier for a kitchen utensil firm to predict people’ total demand and the demand will not be fluctuated. However‚ because of stable revenue flow that this demand nature provides‚ market competition is severe‚ which squeezes the profit margin of functional products. Since revenue is certainly fixed‚ minimizing physical cost becomes the priority for managers. Physically Efficient Process is a more preferable supply chain type for functional products‚ because it can supply predictable demand
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