Natalie Potter AC 270A Case 1 Due October 23, 2015 Lambeth Custom Cabinets (A) Part One: T accounts (All numbers are dollar values ($)) Raw Materials Beginning Balance 3250 | Direct Materials A3 280 | Purchased 1750 | Direct Materials A4 350 | | Direct Materials A5 180 | | Direct Materials
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Case 4-33: Cost Structure; Target Profit and Break Even Analysis Question 1: Compute Pittman Company’s break-even point in sales dollars for next year assuming: a. The agents’ commission remains unchanged at 15% $12,000,000 in sales is needed to break even while employing an outside sales force with commissions of 15% of sales. b. The agents’ commission rate is increased to 20% $13,714,286 in sales is needed to break even while employing an outside sales force with commissions of
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aid in forming decisions, managers depend on information presented in Cost-Volume-Profit (CVP) analysis. In a CVP analysis, information is built on the interrelation of five general components. By understanding these components and how they relate to one-another, managers and accountants can also determine the contribution margin ratio. With these factors in hand, managers can predict the contribution ratios necessary to balance expenses and maximize profits. For managers to make successful decisions
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Name _______ _________ (Please include your name in the file.) I. Classifications (30 points total) Part A: Classifications (2 points each – 22 points total) Determine the classification for each cost item based on 2 different schemes. First, determine cost behavior: whether the cost is variable or fixed (relative to the number of units produced); check the appropriate space. Then, determine whether the cost is a product or a period cost;
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BRIDGESTONE BEHAVIORAL HEALTH CENTER: COST-VOLUME-PROFIT ANALYSIS FOR PLANNING AND CONTROL I. INTRODUCTION Bridgestone Behavioral Health Center, a medical center for comprehensive outpatient substance abuse treatment center positioned at the Midwest United States and has been operating since 1985. Some of the services offered by Bridgestone grouped generally are counselling, crisis intervention, detoxification and methadone maintenance. Under these services they offer patient assessment
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Fundamentals of Cost-Volume-Profit Analysis Orientation P A R T 1 LEARNING OBJECTIVES Preparing and Organizing Yourself After reading this chapter, you should be able to: for Success in College L.O.1 Use cost-volume-profit (CVP) analysis to analyze decisions. L.O.2 Understand the effect of cost structure on decisions. L.O.3 Use Microsoft Excel to perform CVP analysis. L.O.4 Incorporate taxes, multiple products, and alternative cost structures into the CVP analysis. L.O.5 Understand the assumptions
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critical to decisions and to expand the notion of contribution beyond the simple idea of price minus variable cost per unit. A third objective introduces the concept of breakeven analysis, not by focusing on the point where no profit is earned but rather as a tool to consider whether or not one of two price points might be preferred. Finally, the last assignment question invites you to consider factors that lead to profitability. You begin your analysis by focusing on two issues raised in the assigned
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ON CVP ANALYSIS IN BANK Submitted to Dr. Harunur Rashid Professor Department of Accounting and Information Systems University of Chittagong Submitted by Md. Ariful Hoque B.B.A. (Hons.): 4th Year. Class Roll: 4541 Exam Roll: 2004 /42 Session: 2003-2004 Department of Accounting and Information Systems University of Chittagong Date of submission: August 25, 2009 Letter of Submission To Dr. Harunur Rashid Professor Department
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3-36 CVP Analysis and Price Changes a. Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented. 1. First I need to determine the profit. Profit = (Price – Variable Costs) * Unit of Output – Fixed Costs Profit = ($30 - $15) * 60,000 - 0 - $700,000 ($15) * 60,000 = $900,000 - $700,000 = $200,000 Profit = $200,000 2. Next I need to determine the variable costs
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Lecture Unit 3 In the last unit we were introduced to the contribution income statement. I noted the needs of internal management in planning, controlling and decision making are met with this statement format. Breaking costs into behaviors and not functions allows management to determine how costs will rise and fall with different levels of activity; this is a very important concept. A company can have the best products, best workers, and best machinery, but imprecise pricing or cost
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