Owning and operating a small business that needs to expand to keep up with competition can be very hard and overwhelming. Albatross Anchor needs some major renovations done to their business including adding on to the existing building or even building a second building for finished products and storing of the raw materials. Yet it faces the fact that funds may not be available to do all of this. It is now time to make some decisions on how to accommodate the needs of their customers in the most
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month (working 20 days / month). The daily wage (per worker) is $70, and the price of the firm's keys 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 costs exceed its total revenue. The marginal cost of the last unit is $30. The aim of focus will point towards identifying the best tactics of strategic implementation that can be both high performing and manageable. A great deal of expertise regarding resource
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1. Executive Summary Berkshire Threaded Fasteners Company is going through hard time after its founder and president John Magers died. Relatively inexperienced Joe Magers became president of the company in 2010. An inexperienced Joe Magers found it all too hard with very little training to run the company successfully. It resulted in the financial statement of 2010 also, the company went on to make a loss of 73000 in a good business year. So Joe Magers decided to appoint Brandon Cook, an experienced
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What is the break-even volume in units? In sales dollars? Solution 1 Variable costs per unit = $550 + $825 + $420 + $275 = $2,070 Fixed costs per unit = $660 + $770 = $1,430 Normal volume = 3,000 units Regular selling price = $4,350 Total fixed cost = 3,000 units x $1,430/unit = $4,290,000 Unit contribution = price/unit – variable cost/unit = $4,350 - $2,070 = $2,280 Contribution percent = $2,280/$4,350 = 0.524 Break-even volume in units = fixed cost / unit
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level, for the calculation of unit variable cost and total fixed cost. The answer is NO. You can see from the figure below that, in fact, the relevant range is defined by the highest and lowest activity level. Within the relevant range, we assume that the cost behavior does not change. If we draw a straight line through the high and low points, this line will approximate the cost behavior within the relevant range. The intercept fo the line is the total fixed cost and the slope is the unit variable cost
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Geico Advantages to a Total Rewards Approach There are several advantages to using a total rewards approach to compensating the workforce. The top five are described in the text (pp. 15—17). The following paragraphs discuss the facets of the Geico total rewards program that align with these advantages: The first facet is Increased Flexibility. A total rewards approach, which combines transactional and relational awards, offers tremendous flexibility because it allows awards to
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quantity to produce. At peak revenue of $348,000 and peak profit of $228,000 we find ourselves at 12,000 units. At this optimal volume the product price is approximately $29 on the demand curve. At $5 dollars a unit, for 12,000 units variable costs total $60,000. With a demand elasticity of 1.85, our product is fairly inelastic. When raising the entry $22.50 over 54% to $34.50 demand drops less than 40% and peaks profitability at the aforementioned $29 price point. Maximized profit point Pricing
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2. Audiovisual equipment Rental 75.00 3. 4 presenters @ $500 2,000.00 4. Indirect costs @ 25% of $3,675.00 $ 906.00 5. Profit margin @ 5% of $4,594.00 $ 227.00 Total Fixed Costs
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Business Plan Le Kieu Trang – 489192 Bianca-Alexandra Macovschi - 486165 Lowin Shakarchy - 489255 Franklyn Francis - 487265 Moses Zuba - 467335 Confidentiality Agreement This agreement is to acknowledge that the information provided by MultiKatz Company in this business plan is unique to this business and confidential; therefore, anyone reading this plan agrees not to disclose any of the information in this business plan without the express written permission of the Managing Director
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Cost-Volume-Profit Analysis Objective 1 • Identify how changes in volume affect costs. Types of Costs Variable Fixed Mixed Total Variable Cost Total variable costs change when activity changes. Total Long Distance Telephone Bill Your total long distance telephone bill is based on how many minutes you talk. Minutes Talked Variable Cost Per Unit Variable costs per unit do not change as activity increases. Per Minute Telephone Charge Minutes Talked The cost per long
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