Average variable cost per passenger $(70) Contribution Margin per passenger $90 Contribution Margin = Per Passenger fare - Variable cost per passenger Contribution Margin ratio 56.25% Contribution Margin Ratio = Contribution Margin Per Passenger / Average full passenger fare x 100 Fixed operating cost per month $3,150,000 Breakeven point in passengers 35,000 Breakeven point in passengers = Fixed operating cost per month / Contribution Margin per passenger Breakeven point in revenue
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Single Version CSC should offer industrial version at $600. Maximum net contribution is for this segment at $14.3 million. Modeler Version | Market Segment | Size | Segment Dev Cost | Price | Unit Contribution | Product Completion Cost | Net Contribution | Student Version | Large Corps + R&D Labs + Consultants + Small Bus + Students | 542,000 | $950,000 | $50 | $15 for students, $35 others | 100,000 | 8,869,950 | Commercial Version | Large Corps + R&D Labs + Consultants + Small
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be $.60 for every pound of meat it sells given an average daily sales level of 500 pounds. It charges $3.89 per pound of top-grade ground beef. The variable cost per pound is $2.99. What is the contribution margin per pound of ground beef sold? A. $0.30 B. $0.60 C. $0.90 D. $2.99 E. $3.89 Contribution margin = $3.89 - $2.99 = $.90 2. A project has an accounting break-even point of 2,000 units. The fixed costs are $4,200 and the depreciation expense is $400. The projected variable cost per unit
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Hallstead Jewelers Case Study Amanda Dutcher October 6, 2011 1) Fixed Costs=Salaries+Advertising+Administrative Expenses+Rent+Depreciation+Miscellaneous expenses Breakeven=Fixed Costs/Contribution Margin 2003-3230000/377.03=8,566.96 units 2004-3333000/357.68=9,318.39 units 2006-4921000/352.52=13,959.49 units Breakeven$=Breakeven Units*Unit Price 2003-8566.96*845=$7,239,079.12 2004-9318.39*812=$7,566,532.68 2006-13959.49*819=$11,432,822.31 Margin of Safety=Sales-Breakeven Sales
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14% for all models. Due to the high price elasticity index of carts, annual cart sales are estimated to drop to 39,500 carts, down from 60,000 carts sold in 2007. The increase in sales price exceeds the increase in variable costs, increasing the contribution margin. Operating leverage is increased to 5.56, however due to the decreased sales volume, total operating income falls $229,231 to $250,669. This strategy is recommended only if sales volume can be sustained or increased. Increased operating
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000 | Profit | 2,590,000 | 290,000 | 540,000 | 1,760,000 | | | | | | | | | | | A. BEP =Fixed cost/ contribution margin = 4,770,000 / 3.43 = 1,390,670.50 B. What level of operation must be achieved to pay extra dividend, ignoring union demands? Target profit = 2,740,000 = [ Profit + 150,000 (additional Dividends)] Target Profits in Units: =Fixed Cost +Target Profit/ Contribution Margin =4,770,000 + 2,740,000 / 3.43 = 2,189504.30 C. What level of operations must be achieved to meet
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The Fraley Company, a merchandising firm, has planned the following sales for the next four months: March April May June Total budgeted sales $50,000 $70,000 $90,000 $60,000 Sales are made 40% for cash and 60% on account. From experience, the company has learned that a month’s sales on account are collected according to the following pattern: Month of sale 70% First month following month of sale 20% Second month following month of sale 8% Uncollectible 2% The company
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Passengers Per Train | 90 | (2) Load Factors | 70% | (3) Full Fare Seats Filled (1) * (2) | 63 | | | (4) Fare | $ 160 | (5) Less Variable Costs Per Customer | $ (70) | (6) Contribution Margin Per Customer (4) - (5) | $ 90 | | | (7) Revenue Per Car [ (4) * (3) ] | $ 10,080 | (8) Contribution Margin Per Car [ (6) * (3) ] | $ 5,670 | | | (9) Fixed Costs | 3,150,000 | | | a. | | (10) Breakeven (passengers) [ (9) / (6) ] | 35,000 | (11) Breakeven revenue [ (10) *
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| Jen Poe | | | | | | | BUS657 Corporate Managerial Finance | | | | | | | | | | | | | Week #5 | | | | | | | Assignment - Chapter 22 Mini - Case | | | | | | | | | | | | | | | | | | | 1) Calculate BB's current cash conversion cycle. | | | | | | | | | | | | | BB's Ratios: | | | | | | | Average Age of Inventory | $842,020 / [(0.57 *$43,803,000) /365] | | 12.31 | days | | Average Collection Period | $3,240,222/($43
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Salem Telephone Case 1) In my opinion the expenses that are variable with respect to revenue hours at Salem Data Services are Power, Hourly personnel, and Sales promotion. I believe these expenses are variable because they change with revenue. Corporate services is a mixed cost and there is not enough information to ascertain the portion that is variable. The fixed expenses with respect to revenue include, Space costs, Equipment costs, depreciation expense, Salaried staff, system development
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