Sales | $8,583 | $8,102 | $10,711 | Variable Costs | | | | Cost of Goods Sold | $4,326 | $4,132 | $5,570 | Commissions | $429 | $405 | $536 | Total Variable Costs | $4,755 | $4,537 | $6,106 | Contribution Margin | $3,828 | $3,565 | $4,605 | | | | | Fixed Costs | | | | Salaries | $2,021 | $2,081 | $3,215 | Advertising | $254 | $250 | $257 | Administrative Expenses | $418 | $425 | $435 |
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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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31 (for the next year) to reflect a Contribution Income Statement format. The reason for this application is to separate the Variable and Fixed costs associated in selling telecommunications equipment to derive pertinent data needed to determine break even sales. The restructuring of each Income Statement may be found in Appendix A of this report. Reformatting the Income Statement allows us to determine first, the Contribution Margin. The Contribution Margin is significant in determining Break-even
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Finance Assignment III: Chapter 5 1. Explain the differences between fixed costs, semi fixed costs and variable costs The differences between fixed costs, semi-fixed costs and variable costs has to do with the amount of services provided. Variable costs are cost that are expected to increase and decreases with volume (patient’s days, number of visits, etc...). Fixed costs are costs expected to remain constant regardless of volume. Semi-fixed costs are those that are fixed with in ranges that
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Flexible Budgets ACC/543 November 17, 2014 Differences between Master and Flexible Budgets There are two main differences between the master and the flexible budgets. The two budgets have different uses and they treat volume changes in different manners. The master budget is the official budget that management has decided to go with. It is their planned volumes, expenses, and revenues that were determined for the upcoming year. It is used as the starting point by which benchmarks
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Managerial Analysis Mountain Man Brewing Company Goes “Light” 12/13/2010 Mountain Man Brewing Company Nicole Fiamingo Company History Mountain Man Brewing Company was established in 1925, and since then has come to be known as “West Virginia’s Beer”. In 2005, despite a 2% drop in annual sales they sold approximately 520,000 barrels and reported revenue close to $50,000,000. Mountain Man Brewing Company’s average consumer is male, above the age of 45 and typically in the middle-to-lower
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bid. If Heidelberg gets the contract, they would buy all electronic components from ECD .In this context, they asked Mr.Fettinger to solve the dispute in the collective interest of Zumwald. My suggestion for this case is to compare the overall margins achievable (taking into account the returns for each division) in both possible cases – with internal supply or with Display Technologies supplying the components. With the facts that have come out during the discussion, lets consider the case of
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Natalie Potter AC 270A Case 1 Due October 23, 2015 Lambeth Custom Cabinets (A) Part One: T accounts (All numbers are dollar values ($)) 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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2. Using the market price as the transfer price, determine the contribution margins for both the Mining division and Metals division | Mining | Metals Division | Sales Price | $90 | $150 | Less Variable costs | - | - | Transfer price | - | $90 | Direct Material | $12 | $6 | Direct Labor | $16 | $20 | Variable Manufacturing Overhead | $24 | $10 | Variable Selling costs | $5 | - | Contribution Margin | $33 | $24 | 3. If Provo Consolidated Resources Company were to
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| |Per Unit |$190,000 | |Variable Expenses: | | |Total |285,000 | |Per Unit |57,000 | |Contribution Margin: | | |Total |665,000 | |Per Unit |133,000 | |Fixed Expenses |300,000 | |Net Operating Income
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