Exercise 6-5 compute the break even point (lo5) Mauro products has a single product, a woven basket whose selling price is $15 and whose variable cost is $12 per unit, the company’s monthly fixed expenses are $4200 Requied: 1. solve for the company’s break even point in unit sales using the equation method. 2. solve for the company’s break even point in sales dollars using the equation method and the CM ratio. 3. solve for the company’s break even point in unit sales using the contribution
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Unit 3 – Individual Project American InterContinental University ACCT310 – Managerial Accounting Abstract This paper will provide explanation of contribution margins, a determination of an annual break-even point, and operating income of Andre’s Hair Styling with calculations supporting answers. All calculations of business are based on each barber being paid $9.90 per hour working 40 hours per week and 50 weeks per year. Rent and other expenses equal $1,750.00 per month. Expenses include
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long summer break. Even though in traditional schooling it’s easier for teens to get summer jobs, year-round schooling does prevent burnout. That's why Florida should switch to year-round schools. Florida should go to year-round schooling because kids don’t get as bored as they do in traditional schooling. According to www.scholastic.com, after Wake County had their first break, “They didn’t have the bored, glazed-over look of kids who had been in school for weeks on end with no break in sight”
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Problem 3-23 Sales Mix; Break-Even Analysis; Margin of Safety (1). (a) Contribution Income Statement Alvaro | | Bazan | | Amount | Percent | | | Amount | Percent | Selling price per unit | € 4.00 | | | Selling price per unit | € 6.00 | | Variable expenses per unit | € 2.40 | | | Variable expenses per unit | € 1.20 | | Fixed Expenses | € 660 | | | Fixed Expenses | €
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Case Report I, 2014 Fly ash brick project: feasibility study using CVP analysis Executive Summary “Fly Ash Brick” project describes a case of two business people, Rajiv Sharma and Alok Gupta intending to start a business and deciding on whether it will be financially profitable and feasible to tap into this opportunity. Opportunity arose because India utilizes huge amount of coal in order to extract energy and in the process a lot of waste is produced, in this case - fly ash. Huge amount of this
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was a good decision. However, the rent has doubled and some of the fixed costs have gone up as well. The company needs to drive the sales up and differentiate themselves from their competitors. Effective advertising could help the company to break-even in 2007 and make a profit in years to come. RESULTS Significant points from the case: • In a new building just renovated in 2005, with 50% more space and selling staff than ever before, the business had experienced a loss almost double the
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Cost-Volume Profit Analysis Cost-Volume-Profit (“CVP”) analysis is essential for any company to be able to determine break-even points, and determining short term decisions. Arguably, for small businesses, nothing could be more important, as CVP provides the minimum volume of a product needed to sell in order to experience neither a gain nor loss. For entrepreneurs it is important to be effective and efficient when utilizing CVP accounting processes. This provides the framework
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from Pizza Hut because he likes the taste of stuffed-crust pizza made with cheese in the crust. Someone else wants Gracias pizza because she likes the unique crispy-thin crust. A third wants pizza from Smokey’s because of the wood grilled oven taste. Even a simple product like a pizza can have different features unique to its producer. Different customers have different tastes, preferences, and product needs. The variety of product designs on the market appeal to the preferences of a particular customer
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detailed CVP analyses.Cost-volume-profit analysis employs the same basic assumptions as in breakeven analysis. Cost-volume-profit analysis (CVP), or break-even analysis, is used to compute the volume level at which total revenues are equal to total costs. When total costs and total revenues are equal, the business organization is said to be “breaking even.” The analysis is based on a set of linear equations for a straight line and the separation of variable and fixed costs. Total variable costs are
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using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each. (a) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be? (b) How many shirts must Gina sell to break even? What is the total revenue for this? The various costs which Gina Fox incurs are; Fixed Cost (cost of using the equipment), FC = $350 Variable Cost (Material cost per short), VC = $8 per shirt and the Selling price of Foxy Shirts, P = $15 per
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