Five star tools is a small family-owned tool that manufactures diamond coated cutting tools used by jewelers. Recently, the company has begun to experience growth which has caused constraint in one of the three production process. The president of the company, Maxfield Turner and vice-president of marketing Betty Spence, recently sat down to discuss the possible solutions to eliminate this constraint. Five star tools have three major production processes: first, the steel blanks are cut to size
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1) The contribution margin ratio is 25% for Grain Company and the break-even point in sales is $196,800. To obtain a target net operating income of $78,000, sales would have to be: (Do not round intermediate calculations.) | | $285,000 | | $508,800 | | $274,800 | | $217,200 | 2) Rothe Company manufactures and sells a single product that it sells for $80 per unit and has a contribution margin ratio of 40%. The company's fixed expenses are $46,400. If Rothe desires a monthly
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of the team has made the below outlined contributions to this project: Tutor’s Name: | | Day/Time: | | Student Number | Student Name | Signature | % Contribution | | | | | | | | | | | | | | | | | TOTAL CONTRIBUTION: | 100% | Please note: Never sign your name before the percentage contribution has been agreed upon by the Team members. In other words, do not sign a blank contribution sheet. Notes: It would be hoped,
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costs ($200 x 15,000) $ 3,000,000 Total contribution margin ($800 x 15,000) $12,000,000 Fixed costs $10,000,000 Profit $2,000,000 b. What is the hospital’s breakeven point? Contribution Margin x Volume = Fixed Costs $800 x V = $10,000,000 V = 10,000,000/800 V = 12,500 visits to break even c. What volume is required to provide a profit of $1,000,000? A profit of $500,000? To obtain a profit of $1,000,000, the total contribution margin should be $1,000,000 greater than the
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1. List and briefly describe the advantages and disadvantages inherent to the food truck business model and as compared to traditional restaurants. Food trucks have exploded into mainstream American cuisine. Once thought of as a cheap meal available at odd times of the night, street food has become a vehicle for chefs on the rise to make their mark on the food industry. Operating a food truck may seem like an easy task, but it can turn out to be a tremendous undertaking and risky financial venture
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per week = 8000 x $30 = $240,000 * Variable cost per week = $25 x 1,000 + $25 x 1,000 + $4 x 700 x 0.85 + $150 x 405 = $113,130 * Contribution margin per week = $240,000 - $113,130 = $126,870 * Depreciation per week = (14,405 x $1000)/(52 x 3) = $92,340 * Depreciation/contribution margin = 0.73. The depreciation is about 73% of the contribution margin per and the profit is about $34,530 per
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Production, Stock and Turnover: Manufactured goods: Hair Oil:Sales) Selling Price, per unit Liter= 338.55289 1.8 Contribution Margin per unit Liters = Selling Price per unit1.7 – Variable Costs per unit 1.6 = 173.45 1.9 Assuming that the average cost is almost constant for all the SKUs we get an approximation of the cost, selling price of the product and the per unit contribution. There for a 300 ML bottle, for which we
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Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, and revenue/expense ratio for the years 2003 and 2004. Current Ratio 2003 [pic][pic] [pic] [pic] 2004 [pic][pic] [pic] [pic] o Long-Term Solvency Ratio 2003 [pic] [pic] [pic] 2004 [pic] [pic] [pic] Contribution Ratio 2003 [pic] [pic] [pic] 2004 [pic] [pic] [pic] Programs/Expense
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32, 47 17. CVP Computation Var. cost per unit: Units sold: 410000 Price per unit: $68 $60 Fixed costs: $1,640,000 Revenue = Revenue = Total Variable Cost = Total Va 1. a. Contribution margin Contribution Margin = Total Revenues - Total Variable Costs Contribution Margin = $27,880,000 - $24,600,000 Contribution Margin = $3,280,000 b. Operating Income Operating Income = Total Revenue -Total Var. Costs - Fixed Costs Total Revenue Total Variable Cost Fixed Costs Operating Income 2. Effect of
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CYBER CAFÉ CHAPTER ONE 1.0 BUSINESS DESCRIPTION 1.1 THE SPONSOR (BACKGROUND INFORMATION) Noel Aaron Agutu who is the entrepreneur is a Kenyan Citizen aged 19 years; born in February 22nd, 1993. The entrepreneur currently resides in Nakuru town. He is currently pursuing a Diploma Course in Business Administration in the Rift Valley Institute of Science and Technology in Nakuru town. The entrepreneur attained his Kenya Certificate of Secondary Education in the year 2010 from Naivasha High School
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