I = )XV(P 1 1 1– F1 + j2222 F-Fx)v(pPdt. 1Contrib. Pdt. 2Contrib. Pdt. 1 “Direct”Margin Pdt. 2 “Direct”margin Or, for the illustrative numbers, I = 3x1 + 4x2 – 60,000 (x1,x2 > 0) This makes it clear that instead of a break-even volume, there are virtually infinite x1, x2 combinations (i.e., product mixes) that will make I = 0 (or make I = any amount). Graphically, we have a series of“isoprofit” lines, one line for each value of I, the slope of which is a function of the relative
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business activities (Porter) impacted by the problem. * High volume of information – Inbound Logistics. Handling this volume of information was a challenge for cisco because they were only using manual processes, such as receiving orders that were faxed or entered individually on a web portal. This problem was affecting the profits and operational costs of the company. The high volumes of transactions and data created substantial costs and o perational burdens. * Track inventory – Outbound
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ACC650 Module 4 - Cost Estimation and CVP Analysis Click Link Below To Buy: http://hwcampus.com/shop/acc650-module-4-cost-estimation-cvp-analysis/ 1. DuChien Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units? a. $150,000. $151,000. $152,000. $153,000. Some other amount not listed above
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CHAPTER 3: COST ANALYSIS Multiple Choice b 1. The principal advantage of the scatter-diagram method over the high-low method of cost estimation is that the scatter-diagram method a. includes costs outside the relevant range. b. considers more than two points. c. can be used with more types of costs than the high-low method. d. gives a precise mathematical fit of the points to the line. a 2. The major objective of preparing a scatter-diagram is to a
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conditions, Lilly management decided to establish a set of company-wide goals that focused on improving time to market for its products in development and a reduction of manufacturing costs. Specifically, these goals were: 1. Reduced new product time to market by 50% from the current 8 -12 year process 2. Reduce the cost of manufacturing by (25%) The key to achieving these goals was Mueller’s decision of what kind of manufacturing facilities should be used to produce the new products. This equated
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The HF76 wants to revamp its sales incentive plan. The advantage of the old incentive plan is maintaining its original market share and volume of sales to assure certain amount of revenue. However, the plan does not meet the company’s strategy, which is opening the new market, gaining more shares in the lucrative markets, and increasing the accuracy of forecasts. In this essay, through addressing the pros and cons of the new incentive plan, I offer some recommendations to the new incentive plan to
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or a modest over-recovery of expenses (or profit) for the next year? If the center achieves breakeven or a modest over-recovery and you are concerned about events that could cause a potential loss, what would you try to change? (You may consider both on- and off-campus programs.) Break-even = Fixed Cost/WACM $3,493,700/70% = $4,991,000 Profit = CM – FC $3,500,000 – 3,493,700 = $6,300 Yes, they are able to plan for break-even and even a modest profit in the next year. There are factors that
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a) Suppose the monthly revenue and cost functions (in dollars) for commodity produced and sold are: ( ) = 400 − and units of a ( ) = 5000 + 70 respectively. i) Find the profit function. Solution: [2 marks] Revenue function R(x) = 400 − 20 Cost function C(x) = 5000 + 70 Profit Function is defined as ( )= ( )− ( ) = 400 − ( ) = 330 − ii) − 5000 Find the marginal profit function. [2 marks] Solution: Marginal profit is the difference between the marginal
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Global Economy Intermodal Transport Introduction: Intermodal transportation can be thought of as a process for transporting freight and passengers by means of interconnected networks, involving various combinations of modes of transportation, in which all the components are seamlessly linked and efficiently combined. Intermodal transportation is rapidly gaining acceptance as an integral component of conducting business in an increasingly competitive and interdependent global economy. (Yevdokimov
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Hallstead Jewelers Case Study Amanda Dutcher October 6, 2011 1) Fixed Costs=Salaries+Advertising+Administrative Expenses+Rent+Depreciation+Miscellaneous expenses Breakeven=Fixed Costs/Contribution Margin 2003-3230000/377.03=8,566.96 units 2004-3333000/357.68=9,318.39 units 2006-4921000/352.52=13,959.49 units Breakeven$=Breakeven Units*Unit Price 2003-8566.96*845=$7,239,079.12 2004-9318.39*812=$7,566,532.68 2006-13959.49*819=$11,432,822.31 Margin of Safety=Sales-Breakeven Sales
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