In the case study of Springfield, Buckingham is the marketing director for the Nor’easter, which is a class A minor league baseball team in Springfield. Just like any other profit-seeking business the aim of this sports club is sustaining a viable business by ensuring that it makes profit, at least it should have a break-even point in the opening season. The two main revenue sources for Nor’easters are ticket and Johny undertakes market research with an aim of gaining knowledge in connection to
Words: 1674 - Pages: 7
5-11: B/E Analysis; Target Profit; Margin of Safety; C/M Ratio Given: Pringle Company distributes a single product. The company's sales and expenses for a recent month were Total Per Unit Sales $600,000 $40 Variable expenses 420,000 $28 Contribution margin $180,000 $12 Fixed expenses 150,000 Net operating income $30,000 Required: 1. What is the monthly break-even point in units sold
Words: 365 - Pages: 2
Answers a) What is the break-even point in passengers and revenues per month? Passengers 35,000 Revenue $5,600,000 Calculations contribution margin per passenger =passenger fare $160 - variable cost per passenger $70 $90 Contribution margin per unit is the difference between the selling price per unit and the variable cost per unit break-even point in units (tickets sold) = Fixed costs $3,150,000 / Contribution margin per unit $90 35,000 break-even point in dollars =
Words: 1415 - Pages: 6
indirect competitor. This is because in Melaka, there is no other outlet that has this combination of the two concepts together. They either have café by itself or entertainment outlet by itself. The potential for our target market to be attracted is also very high. This is because our target market consists mainly on students surrounding the area especially from Multimedia University and also residents around or within 3 kilometers radius from our Fun and Games Café outlet. As we know the lifestyle of
Words: 4594 - Pages: 19
This essay serves to discuss the various uses of break even analysis in financial entrepreneurship and how the breakeven point is affected by the choice of labor intensive or capital intensive manufacturing technique. The essay will commence by defining the key term breakeven analysis and will proceed by explaining the uses, limitations and as well as how the breakeven point is affected bythe manufacturing facility (LABOR INTENSIVE AND CAPITAL INTENSIVE). Breakeven analysis is a study of the mathematical
Words: 894 - Pages: 4
1. List and briefly describe the advantages and disadvantages inherent to the food truck business model and as compared to traditional restaurants. Food trucks have exploded into mainstream American cuisine. Once thought of as a cheap meal available at odd times of the night, street food has become a vehicle for chefs on the rise to make their mark on the food industry. Operating a food truck may seem like an easy task, but it can turn out to be a tremendous undertaking and risky financial venture
Words: 3439 - Pages: 14
The Basic Profit Equation: Cost-Volume-Profit analysis (CVP) relates the firm’s cost structure to sales volume and profitability. A formula that facilitates CVP analysis can be easily derived as follows: Profit = Sales – Expenses Profit = Sales – (Variable Costs + Fixed Costs) Profit + Fixed Costs = Sales – Variable Costs Profit + Fixed Costs = Units Sold x (Unit Sales Price – Unit Variable Cost) This formula is henceforth called the Basic Profit Equation and is abbreviated:
Words: 791 - Pages: 4
Prepared by Md. Mojaddid Ebna Amin ID : 101-11-1426 Section : C Program : BBA Daffodil International University Exercise 6-12: Miller Company’s most recent contribution format income statement is shown below: Total Per Unit
Words: 1365 - Pages: 6
environment Gross profit is the difference between revenue and the cost of making a product or providing a service, before deducting overhead, payroll, taxation, and interest payments.Net profit is the sales and revenue made over the net on the online database on how much sales the company had made also the taxes and profit they make from net profit. Dixons gross profit is increasing. As its annual report suggests they had made a lot of net sales and generated a lot of profit from it. Recession/Survival
Words: 1174 - Pages: 5
Exercise 6-5 compute the break even point (lo5) Mauro products has a single product, a woven basket whose selling price is $15 and whose variable cost is $12 per unit, the company’s monthly fixed expenses are $4200 Requied: 1. solve for the company’s break even point in unit sales using the equation method. 2. solve for the company’s break even point in sales dollars using the equation method and the CM ratio. 3. solve for the company’s break even point in unit sales using the contribution
Words: 788 - Pages: 4
