1. Calculate the following: a. Contribution per CD unit b. Break-even volume in CD units and dollars c. Net profit if 1 million CDs are sold d. Necessary CD unit volume to achieve a $200,000 profit A. Retail price per unit -Variable cost per unit Retail = $ 9.00 Variable cost per unit = $1.25 CD package + Royalties 0.35 + 1.00= $2.60 9.00-2.60= $6.40 Contribution per CD unit= $6.40 B. Break-even point in units = total fixed costs / contribution per unit Total fixed
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Fixed Variable and Break Even points David Anderson HSM/260 July 14, 2013 Melvin Green Fixed Variable and Break Even points Fixed Costs, Variable Costs, and Break-Even Point Part 1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals program decides to again recalculate fixed costs, variable costs, and the Break-Even Point using the high to low method. Included here are the number of meals served and the total costs of the program
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the Mendel Paper Company’s concern in regards to their four basic paper product lines. It will show the cost and price data for the next fiscal quarter, plus showing the contribution margins per unit and the revisions. The paper will include the break-even point for sales mix along with the margin of safety for the estimated sales volume of the original estimates and the revised estimates as well. Lastly, it will address Herbert’s concern about the variable cost of the place mats. Original Estimated
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wanted to watch his favorite team, the USC Trojans, play as much as he could, as he had much interest in watching, and playing football. After his sight was ‘stolen by cancer’, he desperately wanted to play football, Even Olson’s high school coach told him he had to earn his spot. Even if progress was slow, as Olson could not be shown how to throw correctly, “Olsen practiced relentlessly and over time the speed and accuracy of his snaps improved enormously” (2), which led to Olsen becoming a “first-choice
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Variable Costing and Segment Reporting: Tools for Management Chapter 6 PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education 6-2 Learning Objective 1 Explain how variable costing differs from absorption costing and compute unit product
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teens have taken social media break” discusses the polls of teens who have taken a social media break and the polls of how they felt during and after the break. Now days it's very common for everybody to have a phone. You’ll see third-graders carrying around the newest Iphone. Technology has just advanced into so many new things. Sure, it’s cool to have a phone but now half of the teens can’t go a day without their phone. It turns out that many teens have taken a break from their phones. Not because
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P= $ -114 000 b.Break even volume, V= cf/ (p- cv) V= 55000/ (21- 8) V= 4230.77 recap tires, 2. monthly break even volume V= cf/ (p- cv) We have Cf= 30000, cv= 0.16, p= 0.40 V= 30000/ (0.4- 0.16) V= 125000 units 3. If the new price is p= 0.60, Then the break even volume will decrease. We don’t need to sell as much units as before to break even. Proof: V= 30000/ (0.6- 0.16)
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breakeven point in the annual unit sales of the new product using the labor-intensive method and the capital- intensive method. Exercise 18-1 A In exercise 18-1 A it explains what a breakeven point is, for a company to be able to calculate the break-even point they must have the total fixed cost this has to be computed before anything else is done. For the next method which is the capital-intensive method is total fixed cost the fixed Manufacturing cost-2508000 plus incremental selling expenses
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Internal Cost & Controlling Finances Summary Report In response to a request from the Vice President of Competition Bikes for an analysis and recommendation regarding Activity Base Costing, as well as a request for a break-even analysis with projections of the company’s target profit, I have developed the following report. 1. Costing Method Evaluation Traditional Costing and Activity Based Costing (ABC) are the two systems we will evaluate in relation to Competition
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marginal contribution, break-even, the equation method, the marginal contribution method, graphical method The cost-volume-profit is a necessary tool for forecasting also for management control. The method includes a number of techniques and methods of solving problems based on understanding patterns of evolution characteristics of business costs. The techniques express the relationship between incomes, sales structure, costs, production volume and profits and include break-even analysis and profit
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