Managerial Accounting – Question 1 Break even point in number of sales tickets 2003 2004 average sales tickets variable cost fixed cost sales tickets to break even 1607 725 2954 3349 1524 768 2990 3955 2006 1553 814 3893 5267 Question 2 If average prices were reduced 10% and unit sales increased to 7‚500‚ would the company’s income be increased? 2006 Avg. Sales Ticket Unit Sales Revenue COGS Fixed expenses $1553 6897 $10‚711‚041 $5‚570‚000 $5‚547‚000 2007 $1398 7500 $10‚485‚000 $6‚054
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CASE: Hallstead Jewelers 1) How has the breakeven point in number of sales tickets (number of customer orders written) and breakeven in sales dollars changed from 2003‚ to 2004‚ and to 2006? How has the margin of safety changed? What caused the changes? The Breakeven point in number of sales tickets were “4‚535”‚ “5‚000” and “7‚505” in 2003‚ 2004 and 2006. The Breakeven in sales dollars for the three years were “$7‚287‚043”‚ “$7‚620‚696” and “$11‚655‚277” respectively. While the margin of safety
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The Duchess of Malfi was written in the early 1600’s and is often considered to be Webster’s masterpiece. The story takes place in the Italian city of Amalfi during the sixteenth century‚ where the Duchess of the court of Amalfi is a young widow who has fallen in love with her steward‚ Antonio. Both of her brothers the Cardinal and Duke Ferdinand are against her remarrying and are very powerful. In becoming suspicious of the Duchess‚ Ferdinand hires Bosola to spy on her‚ while the Duchess thinks
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The Duchess of Malfi written by John Webster was first performed around 1613. A dramatic tragedy‚ the play is about a forbidden marriage between the Duchess and Antonio her steward‚ and the wrath of her brothers which leads to many of their deaths. Webster focuses on the role of rank to detail the emotions between relationships in an aristocratic family in a time when class was all important. He uses many distinctive features to convey the substance of the play and its characters‚ and give the actors
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Except COGS and Commission which are variable costs‚ all others are fixed costs. All in thousands of dollars (except sales tickets) 2003 2004 2006 Variable Cost (VC) 4755 4537 6106 Fixed Cost (FC) 3250 3353 5011 Average sales ticket price 1.607 1.524 1.553 Sales tickets (in nos.) 5‚341 5‚316 6‚897 Variable Cost per sales ticket 0.9 0.9 0.9 Breakeven Qty 4‚535 5‚001 7‚506 Breakeven Sales = Breakeven Qty x average sales ticket price Breakeven Sales 7‚287 7‚621 11‚655
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Breakeven Point in Dollars)/ Budgeted Sales = ($8583000-$7287745) / $8583000 = 15.09% 2004 = ($8102000-$7620000) / $8102000 = 5.95% 2006 = ($10711000-$11655265) / $10711000 = -8.82% From the calculations‚ the breakeven point in units of Hallstead Jewelers is increasing from 2003 to 2004; started from 4558360 to 7505070; while the breakeven point in sale dollars also increased from 7325284.5 to 11655373. The biggest possibility of the increase may be the moving and renovation of the store. The expansion
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Wilde uses the Duchess of Berwick as a character who thrives on pettiness of high society and gossiping as a representation of the upper class having a low morality base. Wilde constructs her as a caricature to emphasise the irony of double standards in society by presenting the idea of contradiction between characters and their morals. The Duchess of Berwick may present herself as high status‚ but her low morals and constant need to gossip and devalue others degrades her as a character‚ causing
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Hallstead Jewelers Case Study Class: Managerial Accounting Instructor: Robert O’Haver 1. The break even point in units and sales have increased form 2003 to 2004 to 2006 due to the greater increase in fixed costs especially from expanding the business as well as insufficient average sales and unit sales to compensate these changes. The margin of safety has decreased over the years due to the increase in expenses and the lack of gross profit to compensate
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References: American Institute of Certified Public Accountants‚ (2007). Summary of SAS No. 99‚ retrieved on April 7‚ 2012 from http://www.aicpa.org/InterestAreas/ForensicAndValuation/Resources/Fra udPreventionDetectionResponse/Pages/Summary%20of%20SAS%20No.asp x American Institute of Certified Public Accountants‚ (2012). ET Section 56 – Article V – Due Care. Retrieved on April 7‚ 2012 from http://www.aicpa
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Background description Hallstead Jewelers is a large retailer specializing in jewelry and gift. It was started up as a family business and has gained reputation through their 83 years history. Hallstead provides customers with extensive collections of products‚ including jewelry‚ gems‚ watches‚ tabletop and artistic gifts‚ by its four sales departments. However‚ the market place of Hallstead was challenged as the emergence of nearby modernized shopping center which has impacted customers’ consumption
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