Motor 5 | Sales at capacity (units) | 300,000 | | | | Actual volume (units) | 250,000 | 120,000 | 80,000 | 50,000 | Price per unit | $113.60 | $140.00 | $120.00 | $40.00 | Total revenue | $28,400,000 | $16,800,000 | $9,600,000 | $2,000,000 | Variable cost per unit | $85.60 | $125.00 | $62.50 | $28.00 | Total variable cost | $21,400,000 | $15,000,000 | $5,000,000 | $1,400,000 | Fixed costs | $6,000,000 | $900,000 | $4,500,000 | $600,000 | Operating profit | $1,000,000 | $900,000 | $100
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SCHOOL OF BUSINESS SCHOOL OF ACCOUNTING ACCT5996: MANAGEMENT ACCOUNTING AND BUSINESS ANALYSIS FINAL EXAMINATION Paper 1 Time Allowed: Three (3) hours, plus 10 minutes reading time Total of 100 marks Instructions: The candidate may retain this paper. This exam represents 60% of your total mark for this course. This paper consists of FIVE (5) questions of unequal value. ALL QUESTIONS ARE TO BE ANSWERED Answers are to be written in ink. This is
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output? Justify your view. (16 marks) The break-even output is the number of units at which a firm ‘breaks even’, where total revenue is just enough to cover total costs, meaning that no profit or loss is made. One way to reduce his break-even output is to increase the price as increasing the price will increase the profit margin and if the same amount is sold the total revenue will increase which will lead to an increase in profits meaning that his break-even output will reduce. When Pierre
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of outputs. Items such as raw materials and most labor cost are variable because they can change over time (McConnell, Brue & Flynn, 2009). Understanding both the fixed cost and the variable cost would help business get a better handle on the total cost associated with operating a business. In business economics, cost and knowing the effecting controllers, allows managers to adjust accordingly. Businesses overall, need to know where money is going, when and where they need to cut expenses, and
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Accounting management Case Study: WINDCATCHER LTD tufitri AIT ALI Case Study: WINDCATCHER LTD QUESTION N°1: Establish the essential cost of the order and state any assumptions that you have made in calculating this figure. To calculate the total cost of the order, we have to measure direct labor cost, direct materials cost and manufacturing overhead cost related to the job order so: First step: Measuring Labor cost: The manufacturing process was divided for supervisory purposes into three
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Variable Cost of production is $ 0.60 per unit and the selling price is $ .95 per unit. The plant produces 20,000 units per month. What is the profit per month as a percentage of the total cost of production? The total cost includes fixed and variable costs. Answer: 11.76% Total Cost of production = 5,000 + 20,000 * 0.6 = 17,000 Total Revenue = 20,000 * 0.95 = 19,000 Profit as a % of cost = (19,000 – 17,000)/17,000 = 11.76% Note: A similar analysis will be required to find the selling price if the desired % of profit
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ratio =0.87 Long-term solvency ratio: Long-term solvency ratio =Total assets Total liabilities Long-term solvency ratio =359,863.00 259,979.00 Long-term solvency ratio =1.38 Contribution ratio: Contribution ratio = Largest revenue source Total revenues Contribution ratio =632,889.00 1,244,261.00 Contribution ratio =0.51 Programs/expense ratio: Programs/expense ratio =Total program expenses Total expenses Programs/expense ratio =945,579.77 1,316,681.00 Programs/expense
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The Note on Marketing Strategy (9-598-061) describes the scope of marketing analysis needed to provide the basis for the development of a marketing strategy and the supporting implementation plan. The type of in-depth understanding of factors described there is often usefully supplemented by numerical analysis; at times, we need relatively complex, computer-supported analysis. At others, a low-tech approach utilizing the proverbial “back of the envelope” and maybe a calculator does the job.
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by 84,000 and the fringe benefits by 8,400 and the major equipment depreciation of 26,250 is not included anymore. The fixed costs decrease to $392,220 (510,870 – 84,000 – 8,400 – 26,250 =$392,220). The allocated expenses are $277,267, which makes total fixed costs of (277,267+392,220) $669,487. Variable costs are water usage, medical supplies and purchased lab services = 539,178/5736=94 per treatment Price = $250 as stated in the text Break-even analysis BEP = Fixed costs/(price - variable costs)
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1.1 Identify the sources of finance available to the business Current financial resources of an organization may be deficient when it develops quickly. The amount of organizations who have ability to back their amplified arrangements from money streams alone is not many. Accordingly raising money from other external sources happens in their thought. Furthermore, chiefs might not have enough assets to get the organization who are looking to purchase into a business or purchase out a business from
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