00 Total variable cost $21,400,000 $15,000,000 $5,000,000 $1,400,000 Fixed costs $6,000,000 $900,000 $4,500,000 $600,000 Operating profit $1,000,000 $900,000 $100,000 $0 Ratios: Variable cost to sales 75.352% 89.286% 52.083% 70.000% Contribution margin ratio 24.648% 10.714% 47.917% 30.000% Utilization of capacity 83.333% 40.000% 26.667% 16.667% Breakeven point: Units 214,286 Revenues $24,342,857 Bob asked Jennifer for an opportunity to present his CVP analysis at the
Words: 1824 - Pages: 8
that are variable relative to revenue hours: Power, Operations: hourly personnel. 2. Power: $4.70 per revenue hour Operations (hourly personnel): $24.00 per revenue hour 3. Sales Revenue: $192,400 Variable Cost: $(9,844.10) Contribution Margin: $182,555.90 Fixed Cost: $(212,939) Net Income: $(30,383.10) 4. To break even would require a level of 177.39 commercial revenue hours. 5. Option 1: Income decreases by $12,611.82 Option 2: Income decreases by $3948.18 Option
Words: 251 - Pages: 2
| | 3) | | | | | | Revenues | | | $ | IntraCompany | | | 89,200 | Commercial | | | 110,400 | Total Revenues | | | 199,600 | | | | | | | Variable expenses (power+hourly personnel) | | 10,361 | Contribution margin | | | 189,239 | | | | | | | Fixed expenses | | | | Rent | | | 8,000 | Custodial services | | | 1,240 | Computer leases | | | 95,000 | Maintenance | | | 5,400 | Depreciation | | | 26,180 |
Words: 276 - Pages: 2
high-capacity battery for laptop computers—DRJ, Inc., has been experiencing difficulty for some time. The company’s contribution format income statement for the most recent month is given below: | |Sales (20,000 units × $25.00 per unit) |$500,000 | | |Less variable expenses | 300,000 | | |Contribution margin |200,000 | | |Less fixed expenses
Words: 393 - Pages: 2
EXECUTIVE SUMMARY Federal Express is seeking the way to increase the volume of Courier Pack which has tremendous growth kpotential for the company. Their goal is to increase the Courier Pack volume from 1300 to 6000 per day. However, shipping managers are avoiding a risk of choosing unapproved carriers and Federal Express lacked marketing efforts. Therefore, to achieve the goal, I recommend (1) Federal Express to use various advertising methods such as TV, magazines, newspapers, and radio (2) to
Words: 751 - Pages: 4
12775 days, 11497.5 days at 90% capacity and 9581.25 days at 75% capacity. The hospital’s fixed costs amounted to $10,100 per month and the variable costs were $179.45 per day. The first step in the preparation of the budget was finding the contribution margin (CM) for the hospital under the assumptions that 10 beds are at 50% discount and under every capacity, and that 10 beds are at full discount under every capacity. The CM of 100% capacity was higher than those at 90% and 75% capacity. Not to
Words: 516 - Pages: 3
wiL1084x_fm_i-xxiv_1.indd Page i 1/10/11 7:53:00 PM user-f499 /Users/user-f499/Desktop/Temp Work/Don't Delete Job/MHBR231:Wild:203 Managerial Accounting John J. Wild University of Wisconsin at Madison Ken W. Shaw University of Missouri at Columbia 3 rd edition wiL1084x_fm_i-xxiv_1.indd Page ii 1/10/11 9:14:31 PM user-f499 /Users/user-f499/Desktop/Temp Work/Don't Delete Job/MHBR231:Wild:203 To my students and family, especially Kimberly, Jonathan, Stephanie, and Trevor
Words: 10500 - Pages: 42
4000 | 4500 | Overhead | Engine assembly | 2100 | 4000 | Metal Stamping | 2400 | 3000 | Final Assembly | 3500 | 2500 | Total Overhead | 8000 | 8500 | | Selling Price | 39000 | 38000 | Total Variable Cost | 36000 | 33000 | Contribution Margin per Unit | 3000 | 5000 | | | | Fixed Overhead | Engine assembly | 1700000 | Metal Stamping | 2700000 | Final Assembly | 2700000 | 1500000 | Total Fixed Overhead | 8600000 | Objective is to: To maximise operational profit
Words: 622 - Pages: 3
profit or loss is 9,600 units comparing to Ogden of 20,000 units. In essence, Ogden has to produce more units than Sandy in order to breakeven. Fixed Costs are irrelevant when deciding which plant to reach maximum production capacity but, the contribution margin per unit analysis indicates that Ogden is more profitable than Sandy. This has happened because Ogden’s variable costs per unit are $110 whereas Sandy’s is at $125. Also, additional cost per unit for Ogden is only $5.00 and Sandy’s is $10
Words: 744 - Pages: 3
projected weighted average contribution margin ratio for next year. Using the budget data in Exhibit 1, determine Bridgestone’s projected breakeven point for next year in terms of revenue. Using the budget data in Exhibit 1, determine the revenue that Bridgestone will expect to generate from Individual Counseling services if the company achieves the projected breakeven revenue (see item 2 above) for next year. Using the budget data in Exhibit 1, determine Bridgestone’s projected margin of safety for next
Words: 380 - Pages: 2
