"Variable Cost" Essays and Research Papers

Variable Cost

Running head: VARIABLE COSTS Variable Costs ACC/561 June 12, 2012 Variable Costs Any cost which is not fixed and will change in same amount when there is change in production volume is accounted as variable costs. This also means that they change in total rather than per unit whenever there is production or activity change. In production- labor, material or overhead could be the variable costs involved in the business. In Fitness center, there are different variable costs involved and each...

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Variable Cost and Contribution Margin

term manufacturing overhead? | A) | Factory overhead | B) | Pervasive costs | C) | Burden | D) | Indirect manufacturing costs | 2. | Which one of the following is an example of a period cost? | A) | A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer. | B) | Workers' compensation insurance on factory workers' wages allocated to the factory. | C) | A box cost associated with computers. | D) | A manager's salary for work that is...

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Variable Costs

completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping. 3. Prepare a flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using actual costs for August. 4. Estimate material price and usage for flash memories, labor rate and usage (efficiency)...

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Variable Cost

 budgets. 3. The costs of direct materials are classified as:     A. Choice A B. Choice B C. Choice C D. Choice D 4. The three basic elements of manufacturing cost are direct materials, direct labor, and:  A. cost of goods manufactured. B. cost of goods sold. C. work in process. D. manufacturing overhead. 5. 25. Prime cost consists of direct materials combined with:  A. direct labor. B. manufacturing overhead. C. indirect materials. D. cost of goods manufactured. ...

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Variable Cost and Total Contribution

the relevant cost is the cargo cost only. Therefore, profit contribution of carrying I ton of tapioca from Balik and Singapore: Expected revenue $5.10 Less freight cost (0.25+0.56) 0.81 Profit Contibution 4.29 From Singapore to Balik: Expected Revenue $2.70 Less freight cost (0.16+0.32+0...

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Quiz: Variable Cost and Contribution Margin

Quiz – Chapter 17 – Solution 1. Rider Company sells a single product. The product has a selling price of $40 per unit and variable expenses of $15 per unit. The company's fixed expenses total $30,000 per year. The company's break-even point in terms of total dollar sales is: A) $100,000. B) $80,000. C) $60,000. D) $48,000. The answer is d. CMR = (P-V)/P = ($40 - $15)/$40 = 62.5% Px = F/ (CMR) Px = $30,000/.625 = $48,000 Use the following to answer questions 2-3: Weiss Corporation produces two models...

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Variable Cost and Company

Section B Attempt Any Six Questions (6*5= 30) 1. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain. 2. Crystal Telecom has budgeted the sales of its innovative mobile phone over the next four months as follows: Sales in Units July. . . . . . . . . . . . . . 30,000 August . . . . . . . . . . . 45,000 September . . . . . . . . 60,000 October . . . ....

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Manacc Problem 7-13

1. Computation a. Unit product cost under absorption costing Per unit Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3.50 Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.00 Variable manufacturing overhead . . . . . . . . . . . . 1.00 Fixed manufacturing overhead . . . . . . . . . . . . . . . 10.00 Unit product cost . . . . . . . . . . . . . . . . . . . . . . . . . ....

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Salem Telephone Case

Salem Telephone Case 1) Which expenses are variable and which are fixed with respect to revenue hours? Variable Fixed Power Rent Hourly personnel Custodial Services Sales promotion Computer leases Corporate services Maintenance Depreciation expenses - computer and office Salaried employees Systems development Sales 2) For each expense that is variable, calculate the cost per revenue hour. Power Personnel Sales Promotion Corporate Services January...

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Variable Cost and Contribution Margin

Payable 1,130 11,180 Net Cash Flows from Operating Activities P153,850 COST VOLUME PROFIT 1. Melanie Company produces a merchandise that has the following data: Unit Sales price P80 per unit Unit vairiable costs P48 per unit Total fixes costs P640,000 per annum Units sold during the current year P25,000 units A. Unit contribution margin, contribution margin ratio and variable cost ratio. B. Breakeven point in units and in pesos. C. Margin of safety in units...

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Liverpool

purchased? a) The best use of its scarce resource. Analysis of Product | |Tackle Box |Skateboard | |Direct Labor Cost |$ 18.75 |$ 7.50 | |Direct Labor ($15.00 per hour) |$ 15.00 |$ 15.00 ...

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Ch1 Ws Student

Chapter 1 - Managerial Accounting and Cost Concepts Exercise 1-5 1. Traditional income statement Redhawk, Inc. Traditional Income Statement Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Net operating income 2. Contribution format income statement Redhawk, Inc. Contribution Format Income Statement Sales Variable expenses: Cost of goods sold Selling expenses Administrative expenses Contribution...

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Ac 505 Week 6 Quiz

(TCO D) Seebach Corporation has two major business segments—Apparel and Accessories. Data concerning those segments for June appear below. Sales revenues, Apparel $700,000 Variable expenses, Apparel $406,000 Traceable fixed expenses, Apparel $98,000 Sales revenues, Accessories $710,000 Variable expenses, Accessories $312,000 Traceable fixed expenses, Accessories $107,000 Common fixed expenses totaled $292,000 and were allocated as follows: $155,000 to the Apparel...

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Ch6 Practice Leader Answeronly

operations:    What is the absorption costing unit product cost for the month?    A.  $96 per unit B.  $83 per unit C.  $87 per unit D.  $100 per unit Solution: A F-MOH / Units Produced = 94,900 / 7,300 = 13 29 + 49 + 5 + 13 = 96 2. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:    What is the total period cost for the month under variable costing?    A.  $124,200 B.  $123,200 C.  $168,200 ...

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Act460 Week 3

Original Data: Selling Price: 40.00 Variable Expenses: Invoice Cost: 18.00 Sales Commission: 7.00 Total Variable Expenses: 25.00 Fixed Expenses: Rent: 80,000.00 Advertising: 150,000.00 Salaries: 70,000.00 Total Fixed Expenses: 300,000.00 1. Calculate the annual break-even point in dollar sales and in unit sales for Store 36. Unit Contribution Margin = selling price per unit – variable Expenses Unit Contribution Margin = 40.00 – 25.00 Unit Contribution...

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Lebanon Gasket

* Implementing the lean approach dramatically changed the goal of the Topeka plant’s manufacturing processes and the routings for all of its products. Previously, the goal of the plant’s mass production process was to achieve the lowest possible cost per unit by maximizing employee and equipment productivity. * Even after a successful transition in the plant’s production strategy, the profits continued to decline. * The Financial and Production Departments are blaming each other for the...

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Consolidated Edison

create a $71,408,019.72 positive value the firm. The NPV was calculated taking on account all the possible variables. For the total period variable cost, we multiplied the consumers' demand by the variable cost taking on account the 15% growth on consumer's demand from year 1 to year 3. For year 4 and after, we took the year 3 sales and divided it by the expected return minus the variable cost increment to perpetuity .The net working capital is given for year 1 and after that it increases every year...

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Group Presentation

000 increase in monthly sales. If the sales manager is right, what will be the effect on the company's monthly net operating income or loss? (Use the incremental approach in preparing your answer.) Requirement 2 (continued) Incremental method Variable expense ($14 per unit) Contribution Margin $340,000 Sales increased 238,000 VE increased 102,000 CM increased Fixed Expenses 98,000 Net Operating Income $4,000 Sales (17000 units x 20) $70,000/20 = 3500 units $189,000/13500 = $14 per unit...

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Contribution Margin and Format Income Statement

Question 1 1.   The following is Addison Corporation's contribution format income statement for last month: Sales         $1,000,000 Less: Variable Expenses         $    700,000 Contribution Margin         $    300,000 Less: Fixed Expenses         $    180,000 Operating Income         $    120,000 The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. What is the company's margin of safety in dollars? $400 000 10...

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Variable Cost and Additional Customers

Question4: What closing time should Citywide Spirits Shoppe choose to maximize profits? Through the Attachment: (Evening time) Contribution Margin = average purchase revenue-average purchase cost = $30.52-$23.25 = $7.27 per customer per purchase Average numbers of customer: (Attachment 2) close time averge customers Time Total customer 10pm 10.18 10pm~11pm 12 11pm 10.16 10pm~12pm 21 12pm 10.08 10pm~1am 27 1am 9.71 10pm~2am 32 2am 9.4 10pm~3am 36 3am 9.06 10pm~4am ...

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ACC 225 Week 9 Capstone Discussion Question

a point in time? income statement statement of cash flows retained earnings statement balance sheet 2 A cost which remains constant per unit at various levels of activity is a: fixed cost mixed cost variable cost manufacturing cost 3 MM Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity...

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Capsim Strategy

optimal balance is to have variable costs outweigh fixed costs unless our company gains rapid success.  Fixed costs such as rent, insurance, and salaries will have to be paid regardless of our company’s success, whereas variable costs will rise with the popularity of our products. We plan to cover fixed and variable costs with the sale and profits from our products. Our planned revenues will cover the variable costs, with a large enough contribution margin to cover fixed costs while still providing the...

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Acct505 Quiz

5) Ans: 9.5 (a) Page 2: 1. (TCO D) Data for December concerning Dinnocenzo Corporation's two major business segments-Fibers and Feedstocks-appear below: Sales revenues, Fibers $870,000 Sales revenues, Feedstocks $820,000 Variable expenses, Fibers $426,000 Variable expenses, Feedstocks $344,000 Traceable fixed expenses, Fibers $148,000 Traceable fixed expenses, Feedstocks S156,000 Common fixed expenses totaled $314,000 and were allocated as follows: $129,000 to the Fibers business segment...

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STR 581 Week 6 Discussion Questions

following financial statements is concerned with the company at a point in time? income statement statement of cash flows retained earnings statement balance sheet 2 A cost which remains constant per unit at various levels of activity is a: fixed cost mixed cost variable cost manufacturing cost 3 M&M Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent...

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Dr.Husaiki

past year. Management determined that variable expenses totaled $2,800,000 and fixed expenses totaled $720,000. What is the company's contribution margin ratio? The company's contribution margin (CM) ratio is determined as follows. CM ratio = CM ÷ Sales = (Sales – Variable expenses) ÷ Sales CM ratio = ($4,000,000 - $2,800,000) ÷ $4,000,000 = 30% -- Ashland Burglar Alarms Inc. sells a single product. The product has a selling price of $50 per unit and variable expenses of 80% of sales. If the company's...

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Wriston Manufacturing Corporation

of the transfer of product lines to the other plants, as well as the impact of Group 3 product line discontinuation. The other plants in the WMC system are generally high volume, flow-shop style plants. The transfer of lower volume products with variable manufacturing requirements to high volume plants will lead to a similar product-process mismatch that exists in Detroit. Appendix 2 provides a breakdown of the burden rates attributable to the three product groups. Group 1 and 2 have higher burden...

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Baldwin Bicycle Company: Financial, Marketing, and Strategic Implications of the Challenger Deal

financing. The high Debt to Equity ratio of 1.6 may be a barrier for further financing at a reasonable cost (see exhibit 3). Besides, the company's profitability is not promising at all. The annual return on sales of 2.49% provides the company little room for growing (see exhibit 3). Return on equity, driven by the low asset turnover, low return on sales and high D/E ratio, is shabby compared to the cost of funds. Challenger deal profit analysis (see exhibit 1) The Challenger deal will bring an additional...

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Cru Computer Rental

0.5 2.14 2.47 1.23 1 1.23 2 Calculate The Average Weekly Contribution Margin (Revenues - Variable Costs) to 
CRU in 1996. Ignore Labor and Facility Costs in This Calculation. We Assume That They Are Fixed. How Does the Contribution Margin Compare with The Weekly Depreciation? Weekly Revenue=Number of units on Rent × Rental Price=8,000 × $30 = $240,000 Weekly Variable Costs = Throughput × Cost=1,000 × $25 + 1,000 × $25 + 595 × $4 + 405 × $150 = $113,130 Weekly Contribution Margin = $240...

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Study on Indian and Global Market Structure

CHANLLENGES Major Cost- Fixed and Variable Primarily, the L&T construction’s fixed cost constitutes salary and benefits for employees, Financing charges (interest, Over Draft & LC charges, etc.), Leasing of apartments and/or office spaces, other overhead expenses, depreciation of P&M, Utility bills, Taxes, Transportation Expenses, Tendering cost, Visa Charges, Statutory requirement of employing locals, Customs duty etc.; whereas the variable costs elements are mainly Labour charges, cost of material...

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Perpetual Mercy Hospital Case

of female patients Cons •Gynecologist would cost company an additional $70 per hour. Increasing physician cost by $58,240 Alternative Improve customer relations with employer in downtown area Pros •Add an additional 65 employment physicals every month for a total of 115 per month. Cons •Cannot schedule during work business hours of 8 AM to 5 PM. •Must add physician and increase hours from 7 AM to 7 PM. •Will cost the company additional fixed cost of $10,400 per year. Add advertising ...

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Risk Management Essay

environment) Projects face a host of risks such as,  PROJECT COMPLETION RISK Completion of the project in time and within the estimated cost is itself a major achievement. A project that is delayed will result in time over run which will subsequently lead to a cost over-run. If the project promoters are not able to pump in additional funds required to meet the cost over-run, then the project runs the risk of coming to a grinding halt. Also delayed implementation means an increase in interest commitments...

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Boston Creamery

The two departments that appear to have performed the best are the selling department and the administrative department with $6,000 favorable and $10,000 favorable respectively. However in order to fully conclude that it was a desirable to cut costs, an analysis must be done to see if sacrificing anything important will lead to a worse performance by the department or not. The problem with variance analysis is that in the real world nothing is black or white so in order to interpret the variance...

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Current Market Conditions Competitive Analysis

something better, and something they can feel safe using both at work and at home. “The law of diminishing marginal productivity is the law that states that the marginal increase in total output declines with an increase in additional units of a variable input after a certain point.” (Nayab, 2011, pg 1) At first the output will grow with an increase in input, but eventually it will even out and decline. There is a relationship between the amount of labor and capital employed and the law of diminishing...

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STR 581 Week 3 Discussion Questions

a point in time? income statement statement of cash flows retained earnings statement balance sheet 2 A cost which remains constant per unit at various levels of activity is a: fixed cost mixed cost variable cost manufacturing cost 3 MM Proposition 1: Dynamo Corp. produces annual cash flows of $150 and is expected to exist forever. The company is currently financed with 75 percent equity...

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Variable Cost and Following Table

shipping cost per truckload sent to each warehouses, and the maximum amount that it can ship per month to each warehouse. From/To p1 p2 unit shipping cost Wh1 Wh2 $425 $560 $510 $600 From/To p1 p2 shipping capacities Wh1 Wh2 125 150 175 200 output 200 300 For each retail outlet (RO), the next table shows its monthly demand, its shipping cost per truckload from each warehouse, and the maximum amount that can be shipped per month from each warehouse. unit shipping cost From/To Wh1...

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Marketing Management, Exam Cheat Sheet

Business buying behavior, company purchasing orientations: Buying (short time and tactical; strategies>commoditization-care only about price- or multi-sourcing making suppliers competing). Procurement (simultaneously seek quality improvements and cost reduction; strategy>collaborative relationships with major suppliers). Supply chain management (purchasing role is broadened to become a more strategic, value-adding operation; strategy> improving the whole value chain, from raw materials to end users)...

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Project Report on Coir Ropes

locations are – Bangalore District, Tumkur District, Hassan District,Dakshina Kannada & Udupi District Total Capital Requirement: The total capital requirement including fixed capital and working capital is estimated 78.50 lakh. Of this, the project cost comprising fixed capital and margin money on working capital is Rs 73.40lakh. A. Fixed Capital (Rs. in lakh) Land &Building 27.75 Plant & Machinery with Motors 31.25 Electrical Installation including transformer 6.25 Misc. Fixed Assets 2.50 ...

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Types of Budget

the actual performance with standard performance. Budgets are also prepared in advance. Budgets are prepared to check the availability of finance according to the demand of project. So budgetary control is also essential tool of management to control cost and maximizes profits. Meaning of budget: A budget is a detail plan of operations for a specific period of time. In the present era everyone is with the term budget because it essential in life. A budget is prepared for the effective utilization...

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Bang and Olufsen Economics

Economics Assignment 1 Question 1.1 As mentioned in the text, Bang & Olufsen A/S have to launch several new products. Give examples of fixed and variable costs by developing and selling a new product. Fixed costs * R&D cost * Marketing cost to campaigns * Building up sales and organization Variable cost * Production cost * Sales provision, discounts * Distribution directly related to the sales of products Question 1.2 Analyze and assess by using the subject's...

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Fisheries Business Management and Economics

circumstances are necessary if an is to be a useful tool to forecast the results of business operations. • Feasibility • Natural Environment • Infrastructure Feasibility Study/Repots • Variable cost • Fixed cost • Contribution margin • Variable unit cost and • break – even point Definition of Management: is the active process of making decisions so that use of the available human and material resources of the organization is planed and controlled to ...

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market mix paper

their vehicle General Motors are focusing on their best products while lifting their global resources to form the most undeniable vehicles and technologies. When General Motors build their new sleet of vehicles they optimize their global market to be cost-effective as well as developing finest segmented vehicles. As General Motors plan marketing strategy and tactic for pricing to maximizing revenues with a focused product strategy, supplying globally - vibrant vehicles to the marketplace that offer...

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International business -ISBM answers

Answer 1: MNCs have located R & D centres in developing countries because the  DEVELOPING  COUNTRIES  OFFER (a) access to highly qualified scientists as shortages of research personnel emerge in certain fields in industrialised countries, (b) Cost differentials in research salaries between developing and industrialised countries, and (c) rationalisation of operations, assigning particular affiliates the responsibility for developing, manufacturing, and marketing particular products worldwide...

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Coursework

daily or weekly basis for most start-ups and at least monthly even for an established business. 3 Profit margins In the process of setting prices in line with projected costs, the owner-manager will also be setting profit targets. These can only be achieved if the sales volume targets are met, at the appropriate prices, and costs are controlled. Profit margins give the owner manager this information. They should be compared to original forecasts and kept as high as possible. Margins probably need...

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Sealed Air Case Comments

introducing uncoated bubbles would require no additional capital or R&D investment. In many situations, high-end companies like Sealed Air have a higher variable cost of production than low-end companies like GAFCEL. This cost difference could be a competitive disadvantage. It is important to note that Sealed Air does NOT have any variable cost disadvantage over GAFCEL. • Just as Sealed Air would like to retain the customers whose needs are met with uncoated bubbles, distributors would also...

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Rbs Case

promotion, and trade promotion. Further Regnante must develop a 2008 budget P&L that will show the resulting 10% increase in profits from the marketing expenses. Situation Analysis Context Economic Mature industry Increasing raw material cost Recent price increases Low-involvement purchase Prior to 2005, consumer promotions were not really a significant part of RBS marketing Technological Baking soda first produced in 1846 Social/Cultural Alternative uses for baking soda ...

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Ch5 Questions

data given. 4) Cindy, Inc. sells a product for $10 per unit. The variable expenses are $5 per unit, and the fixed expenses total $30,100 per period. By how much will net operating income change if sales are expected to increase by $43,000? $21,500 increase $40,850 increase $8,600 decrease $12,900 increase 5) Pool Company's variable expenses are 27% of sales. Pool is contemplating an advertising campaign that will cost $19,100. If sales increase by $79,100, the company's net operating...

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Marketing Planning and Control

by his overall experience inside and outside the shop. Price: The price of the fuel and products are all decided and controlled by the Z energy head office in Wellington. It also depends on the quality and quantity of the product. The variable and fixed cost of the product are also kept in mind so that the product is in the reach of the customers. Making profit from the product they are selling is also very important as it decides the profit and loss figures of the company. The price and promotions...

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Classic Knitwear

make decisions that satisfy its board and investors, as well as better the company in all ways possible. One of the successes that the company experienced is low production costs through their state-of-the-art offshore production hub that they established in the Dominican Republic. Because of Classic Knitwear’s moderate cost advantage over other US producers, rival companies such as JamesBrands and FlowerKnit had noticed Classic Knitwear’s model. It would only be a matter of time until these rivals...

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Theme Park

is the skills and knowledge intensive lower industry. 2. Direct income One prominent feature of the theme park is high fixed cost and low variable cost. When the construction complete there is no more big invest, the cost will keep in a very low level, the product is service and experience, do not need more material product and consume, that is why the variable cost remain really low. When reach a certain number of guests which called break even point, the profit will increasing rapidly. And the...

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Birch Paper Company Case Solution

to the profit having done the development work on the box and having received no profit. The commercial Vice President of the Birch is discussing the bidding details with the manager of the Northern division, accepting Thompson’s bid will raise the cost of the Northern division that is competing in a very competitive market. In absence of any order from the top management, the Northern division will accept the lowest bid of $430 from West Paper Company. The Thompson and Southern divisions are not...

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Case 2

Model D400 Chisel________ Selling price $500 $850 Less variable costs: Direct labor $ 85 $ 180 Direct material 150 180 Variable overhead 15 250 60 420 Contribution margin 250 430 Less allocated fixed costs 185 ...

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BUSINESS ANALYSIS

on saturdays Table 1.1 Production Cost and Revenues *computation is done per month, excluding sundays Fixed Cost Item Price Quantity Total Labor Unit P300.00 /day 3 P23,400.00 Rental P14,000.00 1 P14,000.00 P37,400.00 Variable Cost Item Price Quantity Total Market P2,000.00 / P1,200.00 1 P44,800.00 P44,800.00 Revenues Items Price Quantity Total Sales P5,500.00 /P3,000.00 1 P122,000.00 Table 1.2 Net Profit Profit Fixed Cost Variable Cost Production Cost Revenues Net Profit P37,400.00 P44...

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Omega Paw Case Study Solution

set up very high sales targets considering the fact that it is has been in the business for only two years. Production delays and inaccurate demand forecasts can potentially impede the operational and distribution functions, thus adding to overhead costs. In terms of the product itself, customers may find a litter-filled litter box heavy and difficult to roll. As the population of cats is estimated to grow at 4% in the coming years, the company has ample opportunities to continue to market its product...

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CP1 Essay

 Step 3: Answer the following essay question Answer the following essay question Now that your project schedule has been created, your resources have been loaded, and your resource costs have been allocated, please analyze your results and answer the following questions. After you enter all of your resources, answer the following questions: 1. What is your total budget for this project? Was the project within the budget as set forth by the board of directors? 2. What is your budget...

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Final Project: Analyzing Financial Statements

for concern as the numbers are below 1.0 but in year 2004, the ratio shows an amount above 1.0. Certain areas does show signs of improvement where as others show signs of concern. Fixed Cost 2003 $150,000.00 + $24,000.00 = $174,000.00 2004 $150,000.00 + $24,000.00 = $174,000.00 Variable Cost 2003 $1,142,680.77/81,852 = $13.56 2004 $1,797,857.72/141,864 = $12.67 BEP ? I am still confused as to how to calculate. Budgeting Systems The purpose of line item budget is to show...

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Five Forces Competitive Framework

tool for differentiation between the industry players. The ‘others’ are some non-pizza related offerings, such as beverages and desserts. In this industry, the variable cost accounted a majority of total cost, the mainly include the purchase of raw material. Fixed cost, as depreciation and rental, just occupied a small part of total cost. In geographic terms, the pizza industry has more competition in an area which is higher populations. The higher populations are more advantageous because of...

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Aravind Eye Hospital

pillow. 20-30 patients with self-contained bathroom facilities * Detailed records were kept of all post-operative complications, such as iritis Paying Hospitals: * Patients paid for the services, Rs 500 to Rs 1000. With IOL implant total cost Rs 1500 to 2500 * Operation rooms were conducted in an efficient manner, well-paced, routine way The customers at the free hospitals are poorer compared to the paying hospital * What issues does Dr. V. face in achieving his goal of “mass-marketing”...

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Home Depot Financial Analysis

the firm’s resources. Figure 8: Return on Assets Considering that the industry’s average ROA was as high as 8.3%, a negative ROA is not acceptable for most companies. Given its cost of capital was 11.78% in 2012, the ROA of -1.9% indicates that the earnings of Office Depot was not able to cover its financing cost so that its performance was far from adequate in 2012. Based on the DuPont Equation in Figure 9, ROA is the product of ROS and assets turnover, both of which have declined in 2012...

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Rice Mill

15% whereas balance 5% is waste and process loss. The process flow chart is as under: Cleaning of Paddy K De-husking K Polishing K Packing 5.0 CAPITAL INPUTS 5.1 Land and Building It is suggested to buy an open plot of around 200 sq.mtrs. which would cost around Rs. 0.60 lac on which the built-up area would be 80 sq.mtrs. costing around Rs. 2.10 lacs. 5.2 Plant and Machinery The minimum viable capacity has to be processing of 600 tonnes per year on two shift working and around 250 working days. To...

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Memo

can things like changes in operating income, cost, assets and profits levels, before the company gives the info to shareholder and the outside public. Variable costing is not just about preparing income statements. Provide at least three scenarios in which understanding how cost behavior is useful. 1. (Break Even sales volume) A new company is about to open. The company owners should know how much revenue it is going to take to recoup the fixed cost of the company. The break even sales volume must...

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