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# "Contribution Margin And Breakeven Analysis" Simulation

630 words - 3 pages

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### California Products Questions: Bottle neck? Mix product for 3 products? Recommendations for managers?

2930 words - 12 pages \$ 0.12Weighted Average Contribution Margin per unit \$ 1.53We can then calculate the number of units that the CPC must sell in order to breakeven, by dividing the total fixed costs by the Weighted Average Contribution Margin per unit. So with total fixed costs of \$800,000 (as shown in Appendix 2 and Table 6), the CPC needs to sell 524,590 units to break even. This is shown in Table 5 below.Table 5 - Statement of Financial Performance (Break Even

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1331 words - 5 pages alternatives appear to be viable solutions to the problem, they are mutually exclusive. Those alternatives are: 1- Do Nothing: Just maintaining the costs and thus keeping the contribution margin at 35%. JB has been successful to date with its existing approach.2- Increasing advertising to expand awareness in DFW Area. Where the current awareness (»20%) is lower than competitors. At least 30% awareness is required among do-it-yourself

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2037 words - 8 pages . Fixed costEach can cost: \$1.00/can. Variable\$ ProfitLossBreakeven point CansPrice: \$1.50Calculate breakeven pointStart with unit contribution margin (marginal Income)Sales -Variable cost(Price) (Per unit)\$1.50 - \$1.00 = \$0.50Coke machineMonthly rent \$ 200/monthCost of a can \$ 1.00/canSales price \$ 1.50/canUnit contribution: Price - V.C1.50 - 1.00= \$ 0.50B.E.P in units: Fixed costs/unit contribution= 200/0.50=400 cansBreakeven Point in \$% Of

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925 words - 4 pages current and the proposed manufacturing plan.Required:Explain briefly what you think is or should be Omni's strategy and why.Compute the contribution margin and breakeven in units for CB3668, both before and after the proposed reengineering project.Determine the number of sales units at which Omni would be indifferent between the current manufacturing plan and the proposed plan.Should Omni undertake the proposed reengineering plan? Support your

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2151 words - 9 pages the budget goals, and when these goals are not achieved they will describe it as unrealistic goals. Imposed budgets (as they are called) usually mean that managers do not take them seriously and they will then disclaim responsibility for any variances that may have occurred.(Dyson, 2010, p. 339) Data and Analysis The company will use the following data which was submitted by the group board of director to build up the sales and profitability

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731 words - 3 pages . For example, General Mills has many products for sale and each one of them has a different unit selling price and maybe a different variable cost per unit.The contribution margin per unit indicates that for every product sold, a company will have a Y amount of dollars to cover for fixed cost and add value to the net income. So, every time the unit selling prices increase the contribution margin per unit could if increase if variable costs are

### Cost Justification

589 words - 3 pages cost to manufacture one complete bottle + drink are projected from 50 cents to 1 dollar.Operating income of the company will be determine by simple basic formula: Operating income = Revenues - Variable costs - Fixed cost Breakeven point is a quantity of output where total revenues and total cost are equal, it's also a useful tool to calculate the number of product required to cover the capital expenditure. The formula is derived from previous equation, by substituting operating income = 0, we obtain Breakeven no. of units = Fixed costs/ Unit contribution margin Where unit contribution margin is the difference between selling price and variable cost per unit.

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1109 words - 4 pages understand the ‘bottom-line’. In this paper we will discuss value costing in the 21st century, other relevant costing methods, and the relevancy of CVP in today’s workplace. Before we criticize and analyze CVP it’s important to have a good understanding of what it does for a company and the accountant. Cost-volume-profit analysis is also known as contribution margin analysis, which is the percentage of sales dollars after variable costs have been

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2111 words - 8 pages +£ 1149.88+£ 17.00=£ 2,954.79Section 3: The Breakeven Point and Selling Price of the Package3.1 What is a Breakeven Point?The breakeven point is the point at which cost or expenses and income are equal; there is no net loss or gain.Breakeven point= Contribution/Fixed Costs3.2 How Is The Selling Price Determined?Price determination is often a function of the cost of production and a desired level of mark-up. Price determination by

### skyview manor

549 words - 2 pages /total harga kamar= \$19,497 / (\$120 x 80 x 80%)= \$2.54Pendapatan/kamar = Pendapatan /total harga kamar= \$160,800 / (\$120 x 80 x 80%)= \$21Contribution Margin/kamar = Pendapatan per kamar - Variable cost per kamar= \$21 - \$2.54= \$18.46Fixed Costs = Total Expense - Total Variable Costs= \$138,410 - \$19,497= \$118,913Breakeven Point = Fixed Costs / Contribution Margin per kamar= \$118,913 / \$18.40= 6,463 malamBreakeven in Rooms = 6,463 / 120= 53.85 = 54

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4674 words - 19 pages advertising to 1.2% of sales; these price changes will produce a 10% increase in sales, and increase market share to 24.2%, while providing the budgeted 1% net margin. Attachment 1: Situation Analysis I. Customer Environmental Analysis Superior operates three stores in Centralia, MO, the primary trade area in Scott County. Food and beverage retail store sales in Centralia were \$62.3 million in 2002, a 4.6% increase over 2001. Based

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