JET2 TASK 2 1 JET 2 TASK 2: Financial Analysis Theo Adams Western Governors University MBA Program JET2 TASK 2 2 (A1) Budget Concerns Investopedia defines Budget as an "estimation of the expenses and revenues over a specific future period of time. Budgets can be made for a group of people, family, person, country, business, government, organization or anything else that makes or spend money. The budget is a micro economic concept that shows the trade-offs made when one good is exchange
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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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negative word of mouth in the industry the customer is in preventing future sales. | Price | Low Price and High Costs mean Low Margins * Contribution Margin Decreasing – Costs make up for 85% of the contribution margin (Exhibit 4). Although still making a profit, a low cost product with superior service brings in high revenue but a high cost resulting in a low margin. * On site visit by a rep costs $1700 yet only a 1/8 chance of closing
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4. The required sales in units to achieve a target net income is a. (sales + target net income) divided by contribution margin per unit. b. (sales + target net income) divided by contribution margin ratio. c. (fixed cost + target net income) divided by contribution margin per unit. d. (fixed cost + target net income) divided by contribution margin
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Financial District Branch James McGaran was manager of the most important of the 31 branches in the Los Angeles area. Located in Los Angeles’s financial district, James’s branch had a staff of 15 people, revenues of $6 million, and $4.3 million in profit margin. The customer base was very diverse. Individual customers ranged from people who worked in the financial district with sophisticated retail banking needs to less informed individuals banking for convenience. Business customers were sophisticated buyers
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7 – 2 Five Star Tools Managerial Accounting BUS 5431 Fall 2015 December 6, 2015 Executive Summary Five Star Tools is a family controlled manufacturing organization that makes chisels and saws utilized by diamond setters. They deliver the apparatuses using a 3 stage process. In the previous two years the organization has encountered critical development and now and again has not possessed the capacity to meet request due dates. Administration has acknowledged that they have a bottleneck
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AS REVISION SUMMARY BREAK – EVEN • DEFINITION • USES OF B/E • BASIC CALCULATIONS • CONTRIBUTION • CALCULATING B/E POINT • B/E CHARTS • B/E ANALYSIS & EVALUATION • EXAMINERS TIPS NAME: ______________________________ TUTOR GROUP: _____________________ BREAK-EVEN ANALYSIS DEFINITION: - The level of output at which business sales provide just enough revenue to cover all the costs of production. - At the B/E level of output, a business has made NO PROFIT.
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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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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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companies were separate. 2. How long does it take a start-up company to become profitable? The time period for a startup to become profitable is the same as the time it takes the company to develop sales/ revenue, which create enough total contribution margin to cover the fixed costs of the business 3. "Revenue hours" represent the key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect
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