United International University School Of Business Assignment of Managerial Accounting TOPICS: CVP Analysis on Chotpoti Business Submit to: PROF. DR. Habibur Rahman (FCMA) SCHOOL OF BUSINESS UNITED INTERNATIONAL UNIVERSITY Submitted by: Name : x ID : x Semester : Summer2010 Masters of Business Administration Date of submission: 21st August, 2010 CVP on Chotpoti Business Chotpoti Bushiness Young to old all type of people like to eat chotpoti which one of
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New project analysis You must evaluate a proposal to buy a new milling machine. The base price is $108,000, and shipping and installation costs would add another $12,500.The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $65,000. The applicable depreciation rates are 33, 45, 15, and 7 percent as discussed in Appendix 12A. The machine would require a $5,500 increase in working capital(increased inventory less increased accounts payable). There would be no effect
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cost difference of € 39,500. Thus, Heidelberg price would result in ISD negative gross margin. Even though if we look in terms of contribution margin, ISD will still get positive numbers if they took the display monitor from Heidelberg, but looking at the objective of having the X73 as the next best thing in a competitive market, longer term it would not be viable for ISD to continue having a negative gross margin. Analysis 2: Now if we try to
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Victoria Magazines Ltd is considering launching a new monthly magazine at a selling price of £1 per copy. Sales of the magazine are expected to be 500,000 copies per month, but it is possible that the actual sales could differ quite significantly from this estimate. Two different methods of producing the magazine are being considered and neither would involve any additional capital expenditure. The estimated production costs for each of the two methods of manufacture, together with the
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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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to indicate how to earn the maximum profit and forbid the unnecessary cost as much as possible. I recommend to do CVP analysis, including total variable cost, total fixed cost, total contribution margin, variable cost per ticket holder, fixed cost per ticket holder and average revenue per ticket, contribution margin percent, breakeven point to calculate the number of ticket to sale so that ensure the certain satisfied profit, operating leverage. The sensitive analysis will allow the manager use “what-ifâ€
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Question 1 For an activity base to be useful in cost behavior analysis, A. the activity should always be stated in dollars. B. the activity level should be constant over a period of time. C. the activity should always be stated in terms of units. D. there should be a correlation between changes in the level of activity and changes in costs. 0.5 points Question 2 A variable cost is a cost that A. varies in total in
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Running head: JET2 TASK 2 1 JET2 Task 2 Budgeting Bonnie Wilson Western Governors University JET2 TASK 2 A.1. Operational Strengths and Weaknesses A.1. Budget Concerns 2 Revenue from sales is budgeted too high. In year 8 Competition Bikes experienced a 15% decline in sales revenue, and yet for year 9, they have budgeted for a 3.2% increase. This is likely to be an overly optimistic projection and relies heavily on economic factors outside of the company’s control. Inaccuracy in this
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MBA 507: Managerial Finance Lecture 7 Cost-‐Volume-‐Profit Analysis & Managerial Decision Making Mario Fonseka FCMA(UK), CGMA (US), Dip. M (UK), FCMA(SL), MBA (USJ), CerGfied Psychometrician (BPS) Saturday, September 20, 14 Cost-Volume-Profit Analysis Saturday, September 20, 14 Cost-Volume-Profit Analysis CVP Analysis is based on the relationship between sales revenue, costs and profit in the short run, in which
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histogram of these errors. As an example, from this plot, 50% of the errors are between 0.49 and 1.04 or 66.6% of the errors are between 0.49 and 1.17 Our second step is to compute the contribution to margin against the liquidation value if not demanded. From the information above we have the margin contribution as $45 - $25 = $20 and the liquidation value as $25 - $15 = $10. This gives us a 20/(20+10) = 0.66 fractile. From the chart above we assume that forecast error for any item at the 0.66
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