James Whittle Salem Telephone Company Case Study 9/29/2014 1.) The variable costs in Exhibit 2 are Power and Hourly Personnel Wages as the costs fluctuate from month to month and are driven by the revenue hours for the company. The fixed costs in Exhibit 2 are Rent, Custodial Services, Computer Equipment Leases, Computer Maintenance, Computer Depreciation, Office Equipment and Fixtures Depreciation, Salaried Staff Wages, Systems Development and Maintenance, Administrative Wages, Sales Wages
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SML770 Make or Sub-contract Problem SML770 Financial Management Term Project M/s Good Machining Co. Make or Sub-contract Dated: 21st April 2008 Team Members: Name Arvind Kundalia Rahul Jain Sanjeev Thukral Entry No. 2007SMN7096 2007SMN7088 2007SMN7050 Mobile Phone 9910900355 9818031983 9818151991 Email ar_kundalia@yahoo.co.in Rahuljain_k@yahoo.com Sanjeev.thukral@xansa.com Project Mentor: Prof. P.K. Jain Page 1 of 4 SML770 Make or Sub-contract Problem Problem Statement
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Analysis Report Case Study Number 1 The NY Fashion Company Prepared for Prepared by John July 2006 Table of Contents Summary of Case Study: 3 Item a: Maximize total contribution margins given the constraints 3 Item b: Sensitivity analysis of solution given 10,000 yards additional acetate. 6 Item c: Income statement 7 Item d: Unit profit using the volume-based costing method. 10 Item e: Unit profit using the activity based costing method. 11 Item f: Financial/economic
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CVP Analysis Introduction According to “Snap Fitness,” (2011), “economically, the health club industry has proven to be recession-proof, averaging an 8% annual growth rate since the early 1990’s across all health clubs and gyms,” (Fitness Franchise Opportunities). Snap Fitness franchising offers opportunities for entrepreneurs to open a successful business that has already allocated the following benefits and services for consumers and for the franchisee: Location of fitness needs is open 24/7
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will require the company to pay overtime for their workers thus it will increase the variable costs per unit for Ogden by $5.00 per unit and Sandy by $10.00 per unit. The question here is how we spread the 120,000 units between Ogden and Sandy? Analysis When looking at the income statement of both locations, we found that Sandy is more profitable than Ogden. Sandy which has $1,872,000.00 appears to have less fixed costs than Ogden at $4,200,000.00. Therefore, the breakeven point for Sandy
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are fixed with in ranges that are less than the relevant range. 2. Total Costs are made up of what components? Total costs are made up of two components fixed costs + variable costs 8. What are the Critical Differences in profit analysis when conducted in a capitated environment versus a fee-for-service environment? In the fee-for service graph the total revenues line is sloping upwards. However, in a capitated environment, the total revenues line is horizontal, which shows that
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Contribution Margin Income Statement Salem Data Services Revenue Intracompany Revenue 82,000 Commercial Revenue 110,400 Total Revenue $192,400 Variable Expenses 9,844 Contribution Margin $182,556 Fixed Costs 212,939 Net Income (30,383) Break-Even Analysis 205(400)
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ACCOUNTING 256 FIRST MIDTERM Review Problems Multiple Choice—Choose the best answer. Managerial accounting is concerned with: The company as a whole, rather than with the segments of a company. The data needs of stockholders and creditors. The relevance and flexibility of data rather than precision. Meeting the requirements of generally accepted accounting principles. Recording the financial history of the organization. The basic difference between managerial and financial accounting
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TRUE/FALSE. (3 points each) Write 'True' if the statement is true and 'False' if the statement is false. 1) A direct cost is a cost that cannot be easily traced to the particular cost object under consideration. 2) All other things the same, an increase in variable expense per unit will increase the break-even point. 3) When a job is completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a debit to
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Bob has been performing routine types of accounting work, but he would like to become more involved in cost control and in analyses to help the managers make decisions. Recently, he performed a cost-volume-profit analysis of the company’s three products, as shown below. The analysis was based on data from last year’s accounting records. Prior Year Data | | Aggregate | Motor 15 | Motor 10 | Motor 5 | Sales at capacity (units) | 300,000 | | | | Actual volume (units) | 250,000 | 120
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