is the break-even point in passengers and revenues per month? Break-even point (sales) = Fixed Cost/ Contribution margin = 3,150,000/ 160-70 = 3,150,000/ 90 = 35,000 per unit Break-even point (revenue) = 35,000 * 160 = $5,600,000 B. What is the break-even point in
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Introduction Ty Taffe is the manager of Taffe’s Ice Land, the only ice skating rink within a community of 450,000 people. He currently has a successful hockey program that allows him to break more than even. However, he is trying to increase profits by changing his strategy and adding public skating sessions tailored to different customer groups to his every day schedule. (Perreault, Cannon, & McCarthy, 2009) Analysis By doing the SWAT analysis, we will identify the strength, weaknesses, opportunities
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Chapter #7: Cost-Volume-Profit Relationship Cost-volume-profit analysis – mangers use to help them understand the interrelationship among cost, volume, and profit in an organization by focusing on interactions among the following 5 elements * Prices of products * Volume or level of activity * Per unit variable costs * Total fixed costs * Mixed of products sold The contribution format * Total unit CM Ratio * Sales (400 speakers) $100,000 $50 100% *
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Classification…………………………………………………………………2 Cost Volume Profit analysis……………………………………………………….2 Contribution Margin……………………………………………………………….2 Gross Margin and Contribution Margin…………………………………………...3 CVP Relationship in Graphic Form……………………………………………….3 CM Ratio. …………………………………………………………………………3 Application of CVP Concepts……………………………………………………..4 Importance of CM…………………………………………………………………4 Break-even Analysis………………………………………………………………4 Target Profit Analysis…………………………………………………………….5 The Margin of Safety……………………………………………………………
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Presentation ACC/561 2012 Cost Volume Profit and Break-Even Analysis Break-Even Analysis-Volume-Analysis is a systematic method of examining the relationship between changes in volume (that is output) and changes in Sales Revenue, Express and Net Profit. As a model of these relationships, Break-Even Analysis simplifies the real-world conditions which a firm will face. The objective of Break-Even Analysis is to establish what will happen to the financial results if
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Extended Diploma in Business | Assessor name | Fran Mackenzie | Unit number and title | Unit 7 Management Accounting ( J/502/5419) | Learner name | Zahra Ali | Assignment title | Tasks 1, 2 and 3 Regional Business Support Agency. Costs and Break Even | | Grading criteria | Achieved? | Comments | P1 | | | P2 | | | M1 | | | D1 | | | | General comments | | Action plan | | Assessor signature | Fran MacKenzie | Date | | Issue date: 6th October 2014 Final hand
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nearby shop. At present this is not possible. Our target market includeshealth conscious people, sick people, sportsperson& many other consumers, which we have segmented from theDemographical,Geographical,Psycho graphical&Behavioralpoint of view. We have prepared a financial documentation for this feasibility plan of a new product. As we are introducing the product in three categories at 250 ml, 500 ml and 1 Liter bottles, we have prepared the Break-Even-Analysis for each of the product line. We have
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users to purchase both solutions from one vendor. In November 1982, Robert Lipman the vice president of Lipman Bottle Company wanted to develop a pricing strategy that could be recommended to his father that will help the company generate 30 percent profit margin and allow expanding their
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educate those around him. Then, he was requested permission to make a presentation of some break-even data. The Duo-Products Corporation had not been making use of this type of analysis in its planning or review procedures. What French had done was to determine the level at which the company must operate in order to break even. He uses information given in past accounting records to construct his break even analysis without take into consideration with other department about the company operation
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production CHAPTER 3 COST BEHAVIOR: ANALYSIS & USE Mixed Cost = total fixed cost + (variable cost per unit of activity)(level of activity) Y = a + bx High Low Method B = Y2-Y1 X2 – X1 CHAPTER 4 COST-VOLUME-PROFIT (CVP) RELATIONSHIPS CVP Relationships in Equation Form Profit = (Sales – Variable Expenses (VE)) –
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