cash payments, and a complete monthly cash budget with borrowings and repayments. Table 2 Cash Receipts Schedule Sales Credit sales (70%) Cash sales (30%) Collections (month after credit sales) 40% Collections (two months after credit sales) 60% Total Cash Receipts November $120,000 84,000 36,000 December $140,000 98,000 42,000 33,600 January $190,000 133,000 57,000 39,200 50,400 February $210,000 147,000 63,000 53,200 58,800 $146,600 March $230,000 161,000 69,000 58,800 79,800 $175,000
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cost per unit (per piece) for each of the overhead activities for the 3 products Machine Valve Pump Flow Controller Total Machine hours 3750.00 6250.00 1200.00 11200.00 Machine hrs / unit 0.50 0.50 0.30 machine related exp. 336000.00 Cost / machine hrs 30.00 $ Machine / unit 15.00 15.00 9.00 Engineering Valve Pump Flow Controller Total Hrs Engg Work hrs 250.00 375.00 625.00 1250.00 Engg Work hrs / unit 0.03 0.03 0.16 Engineering Cost 100000
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Budget Report We were offered the following data to complete a budget for a hospital. The data contained the following: The hospital had a total of 35 beds of which 10 beds were on a discount, either 50 % discount or full discount. Three different capacities were given to us, 100%, 90% and 75%. The total number of patient days at 100% capacity is 12775 days, 11497.5 days at 90% capacity and 9581.25 days at 75% capacity. The hospital’s fixed costs amounted to $10,100 per month and the variable costs
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Total Variable Costs $24.75 Utilities Cost January Units 750 Cost/Unit $0.05 Total Variable Costs $37.50 Question 3 Sales Budget 1 Q 2 Q 3 Q 4 Q Year Next yr 1Q Expected Unit Sales 8,000 10,000 20,000 12,000 50,000 18,000 x Unit Selling Price $16 $16 $16 $16 $16 = Total Revenue $ $128,000 $160,000 $320,000 $192,000 $800,000 1Q 2Q 3Q 4Q Year Question 4 Total Revenue
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ll Will Bury’s Business Proposal Laura Nash ECO/561 July 11, 2011 Alexander Heil Will Bury has decided that he needs a change in his professional life since he feels as though he missing out on too many family functions. Will has come to the conclusion that he will resign from his current position with his employer and will start up his own business. Recommendation Process for Star-up Willy Bury must submit a layout
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production is that level of output at which total costs equal to total revenue. In the above case, Katie is planning to make security badges in his business. However, before taking a final decision it is really important for Katie to perform break even analysis. This can be done through an equation method where the break-even point in units and in dollars can be calculated from the given data. The formula for the break-even point is, Break-even point = Total fixed cost / sales per unit – variable
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The flexible budget uses the same selling price and cost assumptions as in a original budget. Variable and fixed costs do not change categories. The variable amounts are recalculated using the actual level of activity, which in the case of the income statement is sales units. The important thing to remember in preparing a flexible budget is that if an amount, cost or revenue, was variable when the original budget was prepared, that amount is still variable and will need to be recalculated when preparing
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Introduction The athletic footwear industry is a highly competitive environment where the top four manufacturers hold over 70% of the market share. The barriers to entry into the industry are comparatively low, as anyone with new creative design ideas can produce and market their product, but the success of smaller companies is oftentimes shaky. Brand loyalty, ample capital, and broad based sourcing create an environment where the bigger companies such as Nike and Reebok have little trouble maintaining
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important because, as mentioned previously, variable costs change with changes in output, whereas fixed costs remain constant throughout what is referred to as a relevant range. CVP analysis is based on the following equation: Profit = Total Revenues - Total variable costs - Total fixed costs Read more: http://wiki.answers.com/Q/How_CVP_analysis_is_used_in_managerial_accounting_decision_making#ixzz1Xg3K6A6I The formula BEQ= FC/P-VC Where: BEQ = Breakeven Quantity FC= Fixed Costs P= Price Charged
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Chapter 12 Segment Reporting and Decentralization Solutions to Questions 12-1 In a decentralized organization, decision-making authority isn’t confined to a few top executives, but rather is spread throughout the organization with lower-level managers and other employees empowered to make decisions. 12-2 The benefits of decentralization include: (1) freeing top managers to focus on strategy, higher-level decision making, and coordinating activity; (2) improving operational decision making
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