Cost Volume Profit

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    Aifs Case

    and culture throughout the world with two of its major divisions serving American students traveling abroad in the Study Abroad College division and High School Travel division. AIFS receives their revenues in American Dollars (USD) but incurs their costs and expenses in a foreign currency, mainly in the Euro (EUR) and the British Pound (GBP). AIFS’s currency is exposed to changes in the foreign exchange rate, therefore their gain or loss is determined by the appreciation or depreciation of the American

    Words: 1311 - Pages: 6

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    Fundamental of Cost Accounting

    Fundamentals of Cost Accounting 3e William N. Lanen University of Michigan Shannon W. Anderson Rice University Michael W. Maher University of California at Davis FUNDAMENTALS OF COST ACCOUNTING Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2011, 2008, 2006 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or

    Words: 73102 - Pages: 293

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    Bill French Case Inc

    operate in order to break even. According to him, the company must be able to at least sell a sufficient volume of goods so that it will cover all the variable costs of producing and selling the goods. In addition to that, according to French, it will not make a profit unless it covers the fixed costs as well. The level of operation at which total costs are just covered is the breakeven volume. This according to Bill French should be the lower limit in all their planning. The accounting record had

    Words: 3521 - Pages: 15

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    Business Economics

    BE formulary Break-even point is when the profit is 0, meaning the incoming money pays exactly for fixed and variable costs. q=units V=variable costs p= selling price V=v*q v= variable costs per Unit F=fixed costs C=F+v*q (total costs) break-even point= Fp-v to reach a certain profit= F+profit to reachp-v turnover= p*q contribution margin=p-v in % (p-v)/p contribution margin is the total sales minus variable costs Safety margin expresses how much the turnover can decrease

    Words: 581 - Pages: 3

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    Sales Variance

    Sales Volume Variance Definition Sales Volume Variance is the measure of change in profit or contribution as a result of the difference between actual and budgeted sales quantity. 1. Formula Sales Volume Variance (where absorption costing is used): =   (Actual Unit Sold - Budgeted Unit Sales)   x   Standard Profit Per Unit Sales Volume Variance (where marginal costing is used): =   (Actual Unit Sold - Budgeted Unit Sales)   x   Standard Contribution Per Unit 2. Explanation Sales Volume Variance

    Words: 1511 - Pages: 7

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    Week 3 Assignment

    A. Static budget: Variable Costs | $7 per student 800 students | $ 5,600 | Fixed Costs | | 40,000 | Total Costs | | $45,600 | B. Static budget variance: | Static Budget | Actual | Variance | | Variable Costs | $ 5,600 | $ 3,650 | $1,950 | Favorable | Fixed Costs | 40,000 | 42,000 | 2,000 | Unfavorable | Total Costs | $45,600 | $45,650 | 50 | Unfavorable | C. Flexible budget based on actual volume of students: Variable Costs | $7 per student 730 students

    Words: 700 - Pages: 3

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    Financial Exercise

    ice to CD distributor $9.00 Less: Variable cost CD Package and disk (direct material/labor) $1.25/unit Songwriter’s royalties $0.35/unit Recording artists’ royalties $1.00/unit Total variable cost 2.60 Contribution per CD unit $6.40 2. Calculate the break-even volume in CD units and dollars Total Fixed Cost: Advertising and promotion $275,000 Studio Recordings, Inc. overhead 250,000 Total $525,000 Contribution per CD unit (from #1 above) $6.40

    Words: 962 - Pages: 4

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    Kanthal a

    customer. Since the profit generated from each customer is different and each customer is demanding on SMDA resources. The need to attempt linking between SMDA expense with orders or other cost drivers are becoming increasingly critical. 2. How to measure the profitability customers form all customers, the need to work out accurate cost to each customers, based on the each activities and demand of SMDA recourses. 3. How to managing those unprofitable but with top total sales volume customers.

    Words: 623 - Pages: 3

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    Operating Leverage

    particularly large because his company has too much fixed cost. Required: a. Expand on John’s thought. How are the large losses related to fixed costs? In management accounting, fixed costs are defined as expenses that do not change as a function of the activity of a business, within the relevant period. For example, a retailer must pay rent and utility bills irrespective of sales. In John’s case, I will assume that he will have a Cost-Volume-Profit Analysis performed. I would hope also that this analysis

    Words: 772 - Pages: 4

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    Marketing Managment Solutions for Chapter 2 Q1-3

    Selling Price – Unit Variable Cost = $9.00 – ($1.25 + $0.35 + $1.00) = $6.40 b) Break-even volume in CD units Total Fixed Costs = $275,000 + $250,000 = $525,000 Unit Break-even Volume = Total Fixed Costs/Contribution per unit = $525,000 - $6.40 = 82,031.25units Break-even volume in dollars Contribution Margin = (Unit selling price – unit variable cost) / unit selling price = ($9.00 – $2.60) / $9.00 = 0.7111 = 71.111% Break-even Dollar Volume = Total Fixed Costs / Contribution Margin = $525

    Words: 633 - Pages: 3

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