Competition Bikes (CB) is making CarbonLite and Titanium bikes. To streamline cost there need to be an investigation into which practice is most efficient and cost effective for the CB. Competition Bikes is using a traditional based costing (TBC). There needs to be a comparison between the current use of TBC and activity based costing (ABC) to decide which is most beneficial to the company. Also, the breakeven point to cost volume profit needs to be evaluated. There is a potential for a $50,000 increase
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Exercise 5-11: B/E Analysis; Target Profit; Margin of Safety; C/M Ratio Given: Pringle Company distributes a single product. The company's sales and expenses for a recent month were Total Per Unit Sales $600,000 $40 Variable expenses 420,000 $28 Contribution margin $180,000 $12 Fixed expenses 150,000 Net operating income $30,000 Required: 1. What is the monthly break-even point in units
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Victoria Magazines Ltd is considering launching a new monthly magazine at a selling price of £1 per copy. Sales of the magazine are expected to be 500,000 copies per month, but it is possible that the actual sales could differ quite significantly from this estimate. Two different methods of producing the magazine are being considered and neither would involve any additional capital expenditure. The estimated production costs for each of the two methods of manufacture, together with the
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Sample Business Plan This sample plan is a guide only. The statistical and financial information provided are assumptions for the case study and should not be used for an actual business plan. Intending or existing business people must undertake their own research and use reliable data to prepare their business plans. When setting up your business, be sure to find out which legislation, licences and codes of practise will affect your enterprise. Executive Summary Definition The Executive Summary
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Hydro. Fixed Costs – 1) Rent; 2) Equipment Leases; and 3) Insurance. Q2-9: Contribution margin is the excess of sales over variable costs, not fixed costs. Q2-10: Break-even analysis is a misnomer because because finding the break-even point is only the first step in a planning decision. After determining break-even point, it must be analysed how a decision will affect sales, costs and net income. 2-A1 1) Number of times plant is cleaned | Total m2 cleaned | Labour cost | Cleaning
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CHAPTER 9 RISK ANALYSIS, REAL OPTIONS, AND CAPITAL BUDGETING Answers to Concept Questions 1. Forecasting risk is the risk that a poor decision is made because of errors in projected cash flows. The danger is greatest with a new product because the cash flows are probably harder to predict. 2. With a sensitivity analysis, one variable is examined over a broad range of values. With a scenario analysis, all variables are examined for a limited range of values. 3. It is true that if average
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STUDY The major parts of financial study are (1) statement of assumptions, (2) projected financial statements, (3) possible sources of outside financing, (4) details of various amounts contained in the projected financial statements, and (5) analysis of financial projections. STATEMENT OF ASSUMPTIONS Assumptions are plain statements about the possible future behaviour of certain factors affecting a project. They provide specific basis in the preparation of financial projections if actual
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BUSINESS 3 Mission 4 Vision 4 Core Values 4 Objectives 4 MANAGEMENT TEAM 5 COMPANY STRUCTURE, OWNERSHIP & INTELLECTUAL PROPERTY 5 Structure 5 Ownership 6 Personnel Plan 6 Patents 7 INDUSTRY ANALYSIS 7 Competitive Edge 7 Porters Five Force Analysis 8 MARKET ANALYSIS 9 Target Market 9 Market trends and needs 9 Main Competition 9 MARKETING PLAN 9 Product Description 9 Pricing strategies 10 Promotion: 11 Place: 11 Milestones 12 WEB PLAN SUMMARY 12 Website
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What is Agritainment Agriculture? Entertainment? Tourism? Rob Holland Extension Specialist Center for Profitable Agriculture Agritainment “An income-generating farm enterprise operated for the enjoyment and education of the public” Why Agritainment? It’s the buzz “People will pay for anything” Less than 2% of the population live on farms “It worked last year” There is a demand Incomes and populations have increased Pros and Cons PROS Income Educational People-oriented
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Financial Statement Analysis BUS521- Entrepreneurship and Innovation March 02, 2011 Question: Discuss the sources of funding of the new venture and the rationale for using each source. The securing of funding for a new venture is perhaps the most difficult part of the venture start-up process (Hisrich, Peters, & Shepherd, 2010). The sources of funding for a new venture entry may be varied in such forms as Self, Family and Friends, Suppliers and trade credit, Commercial banks, Government
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