...Ayesha Hamid Question No 1. See-Clear Optics is considering producing a new line of eyewear. After considering the costs of raw materials and the cost of some new equipment, the company estimates axed costs to be $40,000 with a variable cost of $45 per unit produced. a) If the selling price of each new product is set at $100, how many units need to be produced and sold to break even? Use both the graphical and algebraic approach? b) If the selling price of the product is set at $80 per unit, See-Clear expects to sell 2000 units. What would be the total contribution to profit from this product at this price? c) See-Clear estimates that if it offers the price at the original target of $100 per unit, the company will sell about 1500 units. Will the pricing strategy of $100 per unit or $80 per unit yield a higher contribution to port? Solution (a) Fixed Cost= $40000 Variable Cost= $ 45 per unit Selling Price= $100 Break Even Quantity=Fixed CostSelling price per unit-Variable cost per unit Break Even Quantity=$40000$100-$45 Break Even Quantity=$40000$55 Break Even Quantity=728 units (b) Selling Price= $80 Expected Sales (Q) = 2000 units Contribution to Profit= Total Revenue – Total Cost Contribution to Profit= SP (Q) – [FC+VC (Q)] Contribution to Profit= $80(2000) – [$40000+$45(2000)] Contribution to Profit= $30000 (c) Selling Price= $100 Expected Sales= 1500 units Contribution to Profit= Total Revenue – Total Cost ...
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...predictable way as the volume of activity changes. 7-2 It is more practical to find the breakeven point in sales dollars for companies having thousands of individual items. Finding the breakeven point for each item would be laborious and meaningless. 7-3 The contribution margin ratio is: price - variable costs price The contribution margin ratio (CMR) represents the net contribution per sales dollar. The CMR tells us the change in profit associated with a given change in sales dollars. It is a useful measure of the relative contribution to profit of different products, divisions, or sales units. The use of this ratio can give a retail store a good approximation of the sales dollars necessary for the store to break even. A higher CMR is associated with higher risk. A higher CMR can have a more favorable impact on profit. However, if sales fall below breakeven, then a high CMR will yield a relatively more negative impact on profits. 7-4 The basic assumption of the CVP model is that the behavior of revenues and total costs is assumed to be linear over the relevant range of activity. Managers must be careful to remember that the calculations done within the context of a given CVP model cannot be interpreted safely outside of the relevant range of output for that particular model. Other assumptions include: fixed costs are measured by all fixed costs if a long-term perspective (i.e., breakeven over a longer period of time) is to be taken, while only...
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...Running head: DIVIDENDS, CAPITAL STRUCTURES DECISIONS Dividends, Capital Structures Decisions Ma. Cesarlita G. Josol MBA - Acquisitions Strayer University 1 DIVIDENDS, CAPITAL STRUCTURES DECISIONS 2 Use the following information for Questions 1 through 3: Boehm Corporation has had stable earnings growth of 8% a year for the past 10 years and in 2013 Boehm paid dividends of $2.6 million on net income of $9.8 million. However, in 2014 earnings are expected to jump to $12.6 million, and Boehm plans to invest $7.3 million in a plant expansion. This one- time unusual earnings growth won’t be maintained, though, and after 2014 Boehm will return to its previous 8% earnings growth rate. Its target debt ratio is 35%. Calculate Boehm’s total dividends for 2014 under each of the following policies: Growth rate Net Income Dividend Dividend/Net Income Ratio Dividend/Net Income % 8% 2013 $9.8 $2.6 0.265306 26.5306% 2014 $10.584 $2.808 2014 $12.600 $3.34 QUESTION #1: Calculate Boehm’s total dividends for 2014 if its 2014 dividend payment is set to force dividends to grow at the long-run growth rate in earnings. Step 1: Find the dividend / net income ratio for 2013 Dividend/ Net Income Ratio = Dividend 2013 / Net Income2013 = $2.6 million / $9.8 million = 0.265306 Dividend/Net Income Ratio = 26.5306 % **The dividend/net income ratio will be used as the rate for the projection of dividends Step 2: Calculate the 2014 projected net income...
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... 7-2 It is more practical to find the breakeven point in sales dollars for companies having thousands of individual items. Finding the breakeven point for each item would be laborious and meaningless. 7-3 The contribution margin ratio is: price - variable costs price The contribution margin ratio (CMR) represents the net contribution per sales dollar. The CMR tells us the change in profit associated with a given change in sales dollars. It is a useful measure of the relative contribution to profit of different products, divisions, or sales units. The use of this ratio can give a retail store a good approximation of the sales dollars necessary for the store to break even. A higher CMR is associated with higher risk. A higher CMR can have a more favorable impact on profit. However, if sales fall below breakeven, then a high CMR will yield a relatively more negative impact on profits. 7-4 The basic assumption of the CVP model is that the behavior of revenues and total costs is assumed to be linear over the relevant range of activity. Managers must be careful to remember that the calculations done within the context of a given CVP model cannot be interpreted safely outside of the relevant range of output for that particular model. Other assumptions include: fixed costs are measured by all fixed costs if a long-term perspective (i.e., breakeven over a longer period of time) is to be taken, while...
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...=$40,000+$45Q Total revenue=$100Q Break-even=QB.E=F. C/ (s. p – v. c) QB.E = 40,000/ (100) =727.3 So, Break-even is exceeded at 728 units. Graph: Break Even 100,000 80,000 60,000 Total Rvenue 40,000 TotalCost 20,000 0 300 600 720 900 Quantity b) Contribution to profit =T. R- T. C = S.P (Q)-[F.C+V.C (Q)] =80(2000)-[40,000+ (2000)] =$30,000 c) Contribution to profit= T. R – T. C = S.P (Q) - [F.C+V.C (Q)] =100(1500)-[40,000+45(1500)] =$42,500 Answer # 2: Fixed cost = $ 120,000 Variable cost = $ 35 per patient Selling price =$ 55 Breakeven =QB.E= =120,000/ 55-35 = 6,000 Answer # 3: Fixed cost = $ 200 Variable cost= $ 1 Selling price = $ 0.2 Breakeven =QB.E= F.c / S.p – v.c = 200/ 1 – 0.2 = 250hot chocolates Answer # 4: a) Fixed cost = $ 50,000 Variable cost= $ 200 Selling price = $ 350 Breakeven =QB.E= F.c / S.p – V.c =50,000 / 350 – 200 = 333.33 units b) Company needs to consider following operations before making the final decision; * Resources should arrange in a line operation. * Delivery Functions, flexibility, cost and quality operations * Low and high operations * Make to stock, make to order or assemble operations to order...
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...Overview: Apple Corporation released iPhone 4 on June 24, 2010 and sold more than 1.7 million units in the first three days. To prepare for the launch of the new product, Apple contracted with the Danshui Plant No. 2 to assemble the new iPhones. Danshui Plant No.2, a contract manufacturer in southern China that assembles electronic products for companies wishing to save on labor costs, received a one-year contract starting on June 1, 2010 with the Apple Corporation to assemble 2.4 million iPhone 4s. In the first three months of the contract it became obvious that the plant was unable to assemble the expected 200,000 iPhones per month and was operating at a loss. Although the plant is known for hiring semi-skilled workers, the new iPhone contract required a complex assembly process entirely based on handwork by 325 workers, with 140 steps involving 100 components during 5 days. To anticipate the need for qualified workers, Danshui had raised their factory wages by almost 30%. But even with the wage increase, Danshui was not able to hire enough qualified workers to assemble the complex new product. Another issue was that, based on original modeling, Danshui was actually operating at a loss and was unable to fill the expected 200,000 per month iPhone quota in the first three months. To begin analyzing the root causes for the shortfall, the controller had considered preparing a “flexible budget” to provide a more realistic comparison of the performance to the budget. If the...
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...To reflect on collaboration traps • And identify lessons… • for more effective collaborative decision making. Welcome to… Imagine you are a high‐level decision maker of a race ag e you a e a g e e dec s o a e of a ace car company, faced with the dilemma of making a number of decisions affecting the financial future of f ff g f f f your company. You are confronted with different options, types of information, and conflicting p , yp f f , f g opinions, which you will have to analyze and manage p p y properly in order to make the best decision. Take note of… • • • • • How you think about the dilemmas How you think about the dilemmas How you decide How your group discusses How your group decides H d id How you differ from your group decision y y g p Part 2 2nd Dilemma 1. 1 Have a Coffee Break 2. Back to HQ to 1. See what Happens and the 2nd Dilemma (2nd video) 2. 2 Consult the extra material (image) and think! ☺ 3. Reach consensus for 2nd decision 4. Write down your decision 3. Leave decision tracking sheet at h l desk 3 L d i i t ki h t t help d k 4. Back in Room 2 You have 35 min...
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...demonstrates two variables, independent and dependent. The focus on targeting a selected group of 384 returning customer and new customers. Every purchase will include incentives for the completion of an online survey. Each target group will be linked to two separate sites with independent questions. The following questions will be included in the online survey: Return Customers * Age? a) 15-25 b) 26-35 c) 36-45 d) 46-55 e) 56+ * Gender? a) M b) F * How long have you used our products? a) Less than 1 year b) 1-2 years c) 2-5 years d) 5-10 years e) 10+ years * Which product do you use? a) Smart Phone b) Smart Watch c) Other * How often do you purchase a new or upgraded cell phone? a) Every year b) 1-2 years c) 2-5 years d) 5+ years * Please rate your overall satisfaction? a) Poor b) Average c) Good d) Excellent New Customers * Age? a) 15-25 b) 26-35 c) 36-45 d) 46-55 e) 56+ * Gender? a) M b) F * Please list your previous product manufacture? * What influenced your decision to switch? * How...
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...UNIVERSITY COLLEGE OF THE CARIBBEAN Incorporating Institute Of Management Sciences & Institute Of Management & Production A Member of the Commonwealth & OAS Consortia of Universities School of Business & Management Department of Professional Studies Bachelor of Science Degree in Business Administration with a major in Production & Operations Management Assignment 1-Summer 2014 CENTRE : Oxford Terrace MODULE : Cost Accounting [ACT 208] Due Date : June 23, 2014 TIME : 5:30 pm INSTRUCTIONS: 1. The assignment is to be done in groups of 4-5 individuals. 2. Answer all questions. 3. Questions are to be neatly typed in “word” or “excel”. 4. Duplication of work will be rejected. 5. The due date is Thursday, June 23, 2014, 5:30pm Question 1 One of the products that are manufactured by Originals Ltd is “The Longevity”. The Standard Cost card for the product provides the following information for the first week of June 2010: Standard Cost per unit $ Raw materials 2 litres at $80 per litre 160 Direct labour 1 hour at $50 per hour 50 Total cost per unit 210 Actual results for June 2010 Production 1,400 units Direct materials purchased 2,500 litres...
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...the chapters in Part One. 1 cor50782_ch01_001-072.indd 1 10/5/09 11:09:2 P A R T I opened U-Develop because I love photography and I wanted to own my own business. I now get to spend most of my day working with employees and customers making sure that the photos they take are the best they can be. It also gives me a chance to encourage younger people who have an interest in photography, because I work with many of the school groups and after-school clubs here in town. That’s the fun part of the job. But I also have to think about the financial side of the business. I need a systematic way to understand the relation between my decisions and my profits. I’ve Orientation read that managers can calculate the price they need to charge to break even (see the In Action item on CVP analysis and airlines). I should be able to apply the same analysis to my business. 1 Preparing and Organizing Yourself for Success in College Jamaal Kidd was discussing the photo-finishing store that he owns...
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...then let me be the first to introduce you to Traditional Shepherd's Pie. This particular shepherd's pie is an extremely hearty meal. It's very filling and tastes wonderful. The traditional shepherd's pie has a wonderful topping of mashed potatoes that are smothered over a rich meat filling. If you don't have the time to make this one from scratch don't worry, you can use instant mashed potatoes and a good jar of gravy and it can be whipped up and on your dinner table in one hour. I have streamlined this recipe to suit those of us who want to make an amazing meal that takes hours but don't have that time available. Add a tossed green salad and your done. Here is the list of ingredients you will...
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...1 THE HUMAN BODY A. COMPLETION 1. ANATOMY, PHYSIOLOGY 2. directions, planes, cavities, structural 3. superior, inferior 4. ventral 5. posterior 6. cephalad or cranial 7. proximal 8. distal 9. sagittal 10. transverse 11. coronal 12. viscera 13. cranial, spinal 14. mediastinum 15. parietal peritoneum 16. cells 17. protoplasm 18. pathology 19. epithelial, connective, muscle, nervous 20. cardiac 21. dermis, epidermis 22. homeostasis 23. sweat 24. system 25. skeletal, smooth, cardiac B. Matching 26. C 27. f 28. i 29. b 30. g 31. l 32. a 33. n 34. k 35. d 36. o 37. e 38. h 39. m 40. j C. Key Terms ANSWERS MAY VARY. 41. Second subdivision of ventral cavity 42. Heart and vessels pump and distribute blood to and from all cells of the body 43. Toward the head 44. Binds together and supports other tissue and organs 45. Divides front and back of body 46. Farthest from origin 47. Back or posterior 48. Produces hormones that chemically regulate body’s functions temperature and pressure 49. Lowermost or below/lower part of body 50. Protects, insulates, regulates water and termperature, senses temperature and pressure 51. Drains tissues...
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...because it is the one time of year when all the Design Judges, Tech volunteers, Rules Committee members, and the other visionary individuals who make racing what it is, are gathered together. We use this opportunity to talk over ideas face to face and gain a better view of the ‘Big Picture’ so to speak. One of the topics that came up over dinner one evening, this past May, was sub-system robustness, or how strong does a steering/brake/accelerator/gearshift (you pick one) system really need to be? This is a topic which all RACING volunteers (Design Judges & Scrutineers in particular) are sensitive to because we, on occasion, have actually broken student built cars. Make no mistake about it, when this happens, we feel very badly that we have broken something which students have put long hard hours of design/build/test time into. However, we are also quick to point out that we would much rather see the suspect part break standing still, rather than out on the track where someone (be it a student driver, or worse yet, an innocent spectator) could be injured or worse. Unfortunately, some students get upset, and feel that they are being unfairly singled out, because: “We tested that ____ (insert one: brake pedal, steering shaft, accelerator pedal, gear shift, etc) beyond reasonable limits, and it didn’t break for us.” This article will look at each of the different sub-systems that a driver exerts force to operate and help you determine what the...
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... 2. “shall be revealed”Introduced by tenors bars 17-20 | ‘be revealed’ is set over a descending sequence & revealed is mellismatic (lots of notes for few syllables) | 3. “and all flesh shall see it together” Altos in bar 43-46 | The same bit of melody is repeated three times! | 4. “for the mouth of the Lord hath spoken it” tenors & basses bar 51-57 in unison then harmony | Most on same pedal note of A. notes are long- sounds serious & important. | Once the motifs are introduced the parts imitate each other. The parts overlap, so they are sometimes singing in canon. The last four bars of the piece are marked Adagio – they’re much slower. It finished with a plagal cadence (chord V to chord 1). This makes the piece sound like it’s finished. Why does my heart feel so bad – Moby A1 0.00 | Piano only, establishing main chord sequence Am, Am, Em, Em, G, G, D, D. | A2 0.19 | Adds male voice sample “why does my heart______ feel so bad____ why does my soul___ feel so bad__” The sample is unedited. Electronic ghostings from 1953 gospel choir. LOOPED. | A3 0.39 | Adds percussion and countermelody. The left hand of piano is doubled by low synth | A4 0.59 | Adds bass and string synth. These fill out the structure- long sustained chords | A5 1.19 | More syncopated version of piano chords. New piano rhythm decorated with sus2 and sus4 chords (chords use notes 1 3 5 but sus chords use notes 2 or 4) | Bx1 1.38 | Female...
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...| Week | M | T | W | TH | F | S | S | TOTAL | Vol | 1 | 24-Swim | 48-Bike | 32-Swim | 40-Swim | Off | 80-Bike | 40-Run | 4h 48m | | | | | 24-Run | | | | | 288m | | 2 | 26-Swim | 53-Bike | 35-Swim | 44-Swim | Off | 88-Bike | 44-Run | 5h 16m | +10% | | | | 26-Run | | | | | 316m | | 3 | 29-Swim | 58-Bike | 38-Swim | 48-Swim | Off | 97-Bike | 48-Run | 5h 47m | +10% | | | | 29-Run | | | | | 347m | | 4 | 17-Swim | 35-Bike | 23-Swim | 29-Swim | Off | 58-Bike | 29-Run | 3h 28m | -40% | | | | 17-Run | | | | | 208m | | Notes | Short Swim | Short Bike | Med Swim | Long Swim | Off | Long Bike | Long Run | | | | | | Short Run | | | | | | | Grand total: 19h 19m | Monday, Wednesday, Saturday, Post Workout: 10 push-ups, 20 crunch sit ups, 10 body weight squats, and 10 lunges, each leg. Keep good form do ONE set! Tuesday, Thursday, Sunday, Post Workout: 2 minutes jump rope, 10 steps up, 10 reverse lunges, 10 dips and 15 crunch sit ups – do ONE set! Month 2 | Week | M | T | W | TH | F | S | S | TOTAL | Vol | 1 | 29-Swim | 58-Bike | 38-Swim | 48-Swim | Off | 97-Bike | 48-Run | 5h 47m | | | | | 29-Run | | | | | 347m | | 2 | 32-Swim | 64-Bike | 42-Swim | 53-Swim | Off | 107-Bike | 53-Run | 6h 23m | +10% | | | | 32-Run | | | | | 383m | | 3 | 35-Swim | 70-Bike | 46-Swim | 58-Swim | Off | 117-Bike | 58-Run | 6h 59m | +10% | | | | 35-Run | | | | | 419m | | ...
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