The Lazy Mower: Is it really worth it? Questions: 1. Prepare a Pro Forma Statement showing the annual cash flows resulting from the Lazy Mower project. (See table on next page) 0 1 2 3 4 5 6 7 8 9 10 Sales (units) 30,000 34,000 38,800 38,000 36,000 36,000 35,500 35,000 34,500 34,000 Adjusted Sales Price 1,000 1,000
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(shaag@du.edu) STUDENT LEARNING OUTCOMES 1. Define management information systems (MIS) and describe the three important organizational resources within it – people, information, and information technology. 2. Describe how to use break-even analysis to assess the financial impact of information technology. 3. Describe how to use Porter’s Five Forces Model to evaluate the relative attractiveness of and competitive pressures in an industry. 4. Compare and contrast Porter’s three generic
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currently operating at a loss of $3,173 per month, considering that subtraction of fixed and variable costs. The contribution margin per month totals $48,138 or divided out equals to $35.67 per visit. The hospital is not sustaining itself at this point or even paying for its fixed costs. Pro Forma Average Month: | | | | | | | | Number of visits | | 1,350 | | | | | Net revenue | | | $54,888 | | | | | Salaries and wages | | $13,542 | Physicians
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456 Total Operating Expenses $696,708 Net Profit (Loss) $(38,076) Gross Margin (%) -5.8% 2. Now consider the clinic's situation without the new marketing program. How many additional daily visits must be generated to break even? Construct a break-even graph that can be included in your report. USING JAN/FEB 2010 MONTHLY AVERAGE DATA Without the new marketing program, there should be an additional 21.7 ≅ 22 visits per
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GRADUATE STUDIES YOUR TASK: Limkokwing University of Creative Technology CASE STUDY: Cost Behaviour and Cost Volume Profit Analysis 1. Using the High-Low method to estimate the per-unit variable costs and total fixed costs. 2. Using the single product setting of the Cost-Volume-Analysis (CVP) to calculate the break-even point. 3. Use CVP analysis to calculate the break-even point. 4. Prepare an income statement for the company. 5. Calculate the company’s margin of safety 6. Calculation of product
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CONSIDERATION IN SETTING RETAIL PRICES Customer Price Sensitivity and Cost As the Price of a product increases, the sale of the product will decrease, because fewer and fewer customer feels the product is a good value. The price sensitivity of the customer determine how many units will be sold at different price level Price Elasticity- a commonly used measure of price sensitivity or the percentage in quantity sold divided by the percentage change in price: ELASTICITY= Percentage change in quantity
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Case Review: Rohm and Haas 11/4/2010 Background 2 1983: $2B worldwide sale from 4 segments Kathon microbiocide products: $25M Polymers, resins, and monomers Industrial chemicals Plastics Fluid Process chemicals Specialty chemicals Kathon 886 MW Thayer School of Engineering Agricultural chemicals Petroleum chemicals Kathon MWX 11/4/2010 Background 3 Metalworking fluid: 60 million gallons in the US Biocides kill microorganisms in metalworking fluids Product name Treatment
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future financial viability. The purpose of this report is to review and analyse the financial and operational aspects of the company to give the company a better direction in this tough and challenging market condition. The report covers detailed analysis and recommendations on the product line, overall profitability, financial impact of different cost and pricing. The company’s product line consists of three product line 100 series, 200 series and 300 series. Among these 100 series is the most profitable
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|variable cost | | |fixed cost | Question 4 (1 point) [pic] Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $195,300, how many dollars of revenue must the company generate in order to reach the break-even point? Your Answer:Question 4 options: | | |Answer | Question 5 (1 point) [pic] Tim Taylor has written a self improvement book that has the following cost characteristics: |Selling Price
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were selling. This created a higher break-even point which was not met either year. In 2012, since there wasn’t as much produced, there was a lower break-even point and Renton sold 808 units over the break-even point. This level of sales helped to create a contribution margin of 73%, a 21% increase from 2012. Not only was 2012 the most profitable year Renton has seen since they have been in business, it was the first year the company exceeded its break-even point in unit and dollar sales. Zac
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