Chapter 5 Discussion Questions |5-1. |Discuss the various uses for break-even analysis. | | | | | |Such analysis allows the firm to determine at what level of operations it will break even (earn zero profit) | | |and to explore the relationship between
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Contribution Margin = 206.2-202.6 = 4.14 / Unit When it comes to the break even, Contribution margin * Unit(BE) = Fixed Costs. Unit(BE) = 729,000 / 4.14 = 176,086.96， So the break even for Danshui is 176,087. 2. Based on the data in Exhibit 3, Total expected cost / Unit = 41,140,000 / 200,000 = $205.7 / Unit Actual cost / Unit = 38,148,000/180,000 = $211.93 / Unit 3. Flexible Budget | Budget(180,000) | Actual(180,000) | Variance | Revenue | 37,116 | 37,476 | 360
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3018726.17 | Sep 2 | 47470.97 | 1.59 | 3.2 | 4.07 | 11.51 | 193206.85 | 546390.86 | Evaporator | 213538.55 | 1.59 | 3.2 | 4.07 | 11.51 | 869101.90 | 2457828.71 | Heat Exchanger | 29088.52 | 55 | 3.2 | 3.29 | 274.54 | 95701.23 | 7985962.28 | TOTAL | 1 075 | 11.14 | 3.2 | 4.07 | 6.269 | 32 553.24 | 50 141.59 | Equipment | Cp˚ (RM) | Fp | FM | FBM˚ | FBM | CBM˚($) | CBM ($) | Reactor ( R-101 ) | 915.00 | 78.2 | 3.2 | 4.07 | 457.57 | 3724.05 | 418676.55 | Stripper | 87150.62 | 70.55 |
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February | March | Total Power Expense | $1,546 | $1,485 | $1,697 | Total Revenue Hours | 329 | 316 | 361 | Total Variable Cost per Revenue Hour | $4.70 | $4.70 | $4.70 | | | | | | January | February | March | Total Hourly Personnel Wages Expense | $7,896 | $7,584 | $8,664 | Total Revenue Hours | 329 | 316 | 361 | Total Variable Cost per Revenue Hour | $24.00 | $24.00 | $24.00 | The total expense for both Power and Hourly Personnel Wages was divided by the total revenue hours.
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is related to total revenue (TR) and total cost (TC). The TR is the total amount of money that a firm gets from, selling their products; the calculation to determine total revenue is TR=price X quantity. Total revenue is not considered profit though. Profit is actually total revenue minus total cost (profit=TR-TC). According to the scenario of the chart below, Company A increases production and sales from 7 units to 8 units, the total revenue shows no increase. Total Revenue to Total Cost is cost
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budgets at different levels of activities. 11. Flexible budgeting relies on the assumption that unit variable costs will remain constant within the relevant range of activity. 12. Total budgeted fixed costs appearing on a flexible budget will be the same amount as total fixed costs on the master budget. 13. A flexible budget is prepared before the master budget. 14. The activity index used in preparing a flexible budget should not influence the variable
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Joint Command and Staff Programme 38 Distance Learning Rank & Name: Major Lynne Chaloux Syndicate No: 1 Directing Staff: BGen (ret’d) Gagnon Course: JCSP 38 DL Assignment Code: D1/DS 542/ENV/RP-01 Assignment Name: Command Research Paper Unshakeable Faith: The Flawed Command of Bomber Harris ASSESSMENT Assessor: Richard Martin Mark: Comments: UNSHAKEABLE FAITH: THE FLAWED COMMAND OF BOMBER HARRIS
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the 100 series f rom $2.45 to $2.25 per 100 pieces. As the prof it and loss by Product f rom January 1 to June 30, 2000, the reduction of the unit sales price of Series100 f rom $2.45 to $2.25 would mean that the unit sales price would be below the total unit cost of $2.29.T his should mean substantial losses to the bottom line. However, Cook f orecast that if they hold the price at $2.45 price during the last six months of 2000, unit sales would be 750,000 100-piece lots, the revenue would be $1,838
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Zumwald AG case Zumwald produced and sold a range of medical diagnostic imaging systems, biomedical test equipment and instrumentation. The firm has a divisional structure and a highly decentralized basis. Managers of each division have lot of autonomy in decision-making and they are compensated based on achievement of budgeted targets and ROIC. Moreover, Zumwald is vertically integrated (some divisions produce components that are essential to the others). Thus three divisions involved
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silk-screen 100 White paint 20 20 t-shirts replaced3 160 Labour on 60 t-shirts4 200 Overhead on 60 t-shirts5 40 Cost incurred on reworked t-shirts6 20 Sale of reworked t-shirts7 -200 Job transfer to U26 -160 Total Costs 13,420 Total Units 600 Cost per Unit $22.37 Workings 1) Direct Labour = 7 x 600 = $4,200 2) Factory Overhead = 20% x 4200 = $840 3) T-shirts replaced = cost per t-shirt x 20 = (4800/600) x 20 = 8 x 20 = $160 4) Additional
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