Growth Potential. 7) HILO METHOD: Finds Slope (FC, VC) [(Total Cost From Later Year - Total Cost from Year Before Later)] / [(Units from Later Year /-Units from Year Before Later)] = VC FC = Total Cost – (VC)(UNITS) 2012 Units: 800 Total costs: 7000 2011 Units: 500 Total costs : 6100 [7000/6100] / [800/500] = $3/unit ( VC 3(800) 2400 ... 7000-2400 FC= 4600 8) BREAKEVEN POINT BE = [FC/[P-VC] BE ( Given a total profit ) = [FC+TP]/[P-VC] QUESTION: How many units must you sell
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in the subsidiary being unprofitable and unsustainable. Without bringing in additional customers to reach their breakeven point they should move forward with closing the subsidiary. Table 1.1 Month | Jan | Feb | March | High | Low | CM | Total revenue hrs | 329 | 316 | 361 | 361 | 316 | | Power | $1,633 | $1,592 | $1,803 | $1,803 | $1,592 | $4.69 | Operations | $7,896 | $7,584 | $8,664 | $8,664 | $7,584 | $24.00 | Materials | $9,031 | $8,731 | $10,317 | $10,317 | $8,731 | |
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and it will explain the relationship each has with total revenue, total cost, and it will explain the concept of profit maximization. Marginal Revenue Marginal revenue is “The change in total revenue that results from the sale of 1 additional unit of a firm’s product; equal to the change in total revenue divided by the change in the quantity of the product sold.”(McConnell, C. R., & Brue, S. L., Flynn, S. (2012)). Total revenue is the total receipts of a firm from the sales of any given quantity
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provided. Use this information to answer the succeeding eight questions: Materials Inventory (Jan. 1) $33,500 Work-in-process Inventory (Jan. 1) $28,100 Finished Goods Inventory (Jan. 1) $36,700 Cost of materials purchased $192,000 Total direct labor costs $168,300 Depreciation – factory machinery $36,200 Small tools expense $8,100 Office supplies $13,400 Machine helpers wages $48,500 Miscellaneous factory expenses $19,600 Presidents salary $125,000
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Chapter III, Performance review relating to Statutory corporation Chapter III Performance review relating to a Statutory Corporation Gujarat State Road Transport Corporation Executive summary Gujarat State Road Transport Corporation (Corporation) provides public transport in the State through its 16 divisions and 125 depots. The Corporation had fleet strength of 7,561 buses as on 31 March 2009 and carried an average of 23.97 lakh passengers per day. The performance audit of the Corporation for
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1. Explain fully how auto manufacturers should choose among substitutable inputs and production processes. Discuss in detail and apply the related concepts According to the textbook, the production process is the process used by an organizations to produce a good. It begins with the production function, which is a descriptive relation that links inputs with output. It (production function) specifies the maximum feasible output that can be produced for given amounts of inputs. Production functions
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month working 20 hours per month. The daily wage per worker is $70, and the price of the firm's output is $32. The cost of other variable inputs is $2,000 per day. You are told that the firm's fixed cost is "high enough" so that the firm's total cost exceed its total revenue. The marginal cost of the last unit is $30. As the newly hired managing consultant of a 'firm' employer, the aim of focus will point towards identifying the best tactics of strategic implementation that can be both high performing
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Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, and revenue/expense ratio for the years 2003 and 2004. Current Ratio 2003 [pic][pic] [pic] [pic] 2004 [pic][pic] [pic] [pic] o Long-Term Solvency Ratio 2003 [pic] [pic] [pic] 2004 [pic] [pic] [pic] Contribution Ratio 2003 [pic] [pic] [pic] 2004 [pic] [pic] [pic] Programs/Expense
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November 3, 2011 MGMT 3624 -‐ Case 3: B&L Inc. Assignment 1) What do you think of the quote from Mayes? • How would you respond? • What information would you request? 2) Can Brian Wilson use the EOQ formula here to establish the lot size? • Do all of the EOQ
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1. The Berwyn Company is considering the addition of a new product to its product line. The firm has plenty of excess manufacturing capacity to produce the new product, and its total fixed cost would be unaffected if the new product were added to its line. Nonetheless, the firm’s accountants decide that a reasonable share of the firm’s present fixed costs should be allocated to the new product. Specifically, they decide that a $300,000 fixed charge (cost) will be absorbed by the new product. The
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