Question 1 For an activity base to be useful in cost behavior analysis, A. the activity should always be stated in dollars. B. the activity level should be constant over a period of time. C. the activity should always be stated in terms of units. D. there should be a correlation between changes in the level of activity and changes in costs. 0.5 points Question 2 A variable cost is a cost that A. varies in total in
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Examination Structure – Unit 8: Business Development Executive Summary The Business Idea (8.1)(28 marks) 1. An analysis of the outcomes of your primary and secondary research (include data and findings as Appendix 1) 2. Reasons for your choice of business 3. Reasons for rejecting other business ideas 4. Reasons for choice of either sole trader or partnership 5. Aims and objectives of your business 6. Likely competitors for the product or service 7. The marketing mix
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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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What is CVP? CVP or Cost Volume Profit analysis is an extremely interesting subject and one of the most useful for helping managers with short-term planning and decision making. This is because CVP analysis emphasizes the interrelationships of costs, quantity sold and price, it brings together all the financial information of the firm. CVP helps the managers understand the relationship between cost, volume and profit in organization by focusing on interactions among the following five elements:
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Break Even (Unit Sales Price-Variable Costs) Fixed Costs = Break Even (Unit Sales Price-Variable Costs) Fixed Costs = Principles of Marketing – MKTG 3010 – Fall 2014 Final Exam Study Guide –this guide is illustrative rather than exhaustive Topics from overall course themes (about 30-35% of the exam) * Brief definition of marketing: Managing profitable customer relationships * SWOT analysis * Break-even analysis Break Even | = | Fixed Costs | | | (Unit Sales
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How To Run a Successful Business Using Four Key Business Models Okay so you have started your business and now you're having trouble figuring out what comes next. Well here is the solution for you. This report will serve as a basic manual on how implement certain business plans that are important in running and maintaining a successful business. The Basics Before any business models are discussed it is important to understand the basic of running a business. To start off knowing what type of
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Break-Even Analysis Kelly Rosales FIN/200 September 6, 2013 Albert Schweigert Break-Even Analysis 13. Healthy Foods, Inc., sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80,000, while the variable costs of the grapes are $.10 per pound. A. What is the break-even point in bags? BE=Fixed costsContribution margin=Fixed costsPrice-Variable cost per unit=FCP-VC BE=$80,000$10-($.10×50)=$80,000$5=16,000 B. Calculate the profit or loss
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costs, sales are at the Break-Even Point. The contribution of each unit sold beyond BEP is the increment of profit. ❍ At n = B the sum of contributions from units equals the total fixed cost. The contribution of each unit sld beyond n = B is an increment of profit. ❍ Example 5-1: If VC is 60% of sales; with unit price at $10/each and FC = $40,000. What is the total sales? Sales @ BEP = a (Sales @ the BEP) + TFC X = .60(X) + $40,000 X = $100,000 To find break-even in units: $100,000/$10
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is to get 30% margin of the revenue. Exhibit 9 shows the break even, which means no gain or loss, the profit margin of 30%, and then the price calculated to achieve the margin of revenue Mr. Lipman wanted. We subtract the 30% of revenue; the break even should be the rest of 70% of revenue. So we use: Variable cost + Fixed cost/Total machine-hours ($106,944/16,000hrs) = Break even Total price (revenue) * (1-30%) = Break even Thus, the suggested prices are shown in Exhibit 9. We found
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Millions of Americans are beginning to break laws every day and they are becoming scofflaws, sounds crazy doesn't it? But it’s true, Frank Trippett in his passage “A Red Light for Scofflaws” mentions that more and more Americans are breaking laws as simple as speeding, littering on the side of a road, and even causing some noise pollution. Which is turning them into scofflaws. All of these laws aren't taken very seriously but they are still laws and people need to taken them more seriously before
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