Wk4fixedcosts
Theresa Allan HSM/260 – Financial Management for Human Service Managers November 23, 2014
HSM/260 – Week 4, Fixed costs, variable costs and breakeven point
10.1
PX-A+BX
5.77x=6.745+3.93x
5.77-3.93=6.745+ (3.93-3.93)
1.84x=6.745
1.84x+1.84x=6,745+1.84x
X=3666 (the monthly BEP) 3,666+12=43,992 (the fiscal year BEP)
WHDM program profit analysis
4.00= meal contracted 5039 the breakeven point (BEP) =$4.92
1,008 revenue 1,008 meals at $5.77-$5,816.16 for total cost per meal 1,008 at $3.971.44 for a total profit of $5,816.16-$3961.44=$1854.72
10.2
The New River Community Council (NRCC) breakeven point (BEP)
PX-A+BX
20x-6,000+3,900+4.50x
20x-990+4.50x
20x-4.50x=9,900+ (4.50x-4.50x)
15.5x=9,900
15.5x+15.5x=9,900+15.5x
X=639
The maximum number =650 breakeven point (BEP) =639 the surplus capacity=11 newsletter coordinator’s salary $6,000 per year, newsletter assistant’s salary $3,900 per year. Because the two employees do have the maximum capacity of 650 there is no slack capacity.
HSM/260 – Week 4, Fixed costs, variable costs and breakeven point
10.1
PX-A+BX
5.77x=6.745+3.93x
5.77-3.93=6.745+ (3.93-3.93)
1.84x=6.745
1.84x+1.84x=6,745+1.84x
X=3666 (the monthly BEP) 3,666+12=43,992 (the fiscal year BEP)
WHDM program profit analysis
4.00= meal contracted 5039 the breakeven point (BEP) =$4.92
1,008 revenue 1,008 meals at $5.77-$5,816.16 for total cost per meal 1,008 at $3.971.44 for a total profit of $5,816.16-$3961.44=$1854.72
10.2
The New River Community Council (NRCC) breakeven point (BEP)
PX-A+BX
20x-6,000+3,900+4.50x
20x-990+4.50x
20x-4.50x=9,900+ (4.50x-4.50x)
15.5x=9,900
15.5x+15.5x=9,900+15.5x
X=639
The maximum number =650 breakeven point (BEP) =639 the surplus capacity=11 newsletter coordinator’s salary $6,000 per year, newsletter assistant’s salary $3,900 per year. Because the two employees do have the maximum capacity of 650 there is no slack capacity.