period of the term. This will give you the cost of per unit for the amount made and the amount. With the variable costing unlike the absorption costing you will use the fixed overhead‚ instead of the per-unit. The variable costing you would include all of your supplies‚ raw materials and shipping. You will need to add all of your fixed overhead for the entire period. Since this is the variable cost you will not calculate these figures on a per-unit basis‚ but a lump sum. One of the advantages
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2: If EasyFind’s variable costs are $10 per dozen‚ what is their total contribution each month at current prices? ($19 - 10) * 5‚470 = $49‚230 [+/- $1‚477] Total contribution = Unit Contribution * units sold QUESTION 3: What will be EasyFind’s new price if they choose to implement the price decrease? $19 * (1 - 20%) = $15.20 [+/- $0.46] New Price = Old Price * (1 - Price Reduction %) or New Price = Old Price - Old Price * Price Reduction% QUESTION 4: If EasyFind’s variable costs are $10 per
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Initial idea: Offer affordable sports equipment for children Products: − Used (second-hand) products − Surplus equipment from manufacturers and retailers Current situation (December 2007): − Demand has been growing steadily over the last years − The products are distributed to the U.S. customers through a single (and small) warehouse in St. Louis − The warehouse is leased on a year-to-year basis − The current network design‚ in particular the distribution network and warehouse
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regardless of how many items sold. All start-up costs‚ such as rent‚ insurance and computers‚ are considered fixed costs. Variable costs: These are recurring costs that are absorbed with each unit sold For example‚ if a company was operating a greeting card store where it had to buy greeting cards from a stationary company for $1 each‚ then that dollar represents a variable cost. As the business and sales grow‚ it can begin appropriating labor
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outcomes 2. Introduction 3. Covariance a. Discrete Random Variable b. Continuous Random Variable c. Special cases 4. Correlation 5. Appendix 6. Summary 7. Exercises 8. Glossary 9. References Institute of Lifelong Learning‚ University of Delhi 2 Learning outcomes After you have read this chapter‚ you should be able to:1. Define Covariance. 2. Calculate the covariance for the discrete and Continuous Random Variables. 3. Consider the special cases of covariance. 4. Compute
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1. Inventory turnover is calculated by dividing (Points: 4) cost of goods sold by the ending inventory. cost of goods sold by the beginning inventory. cost of goods sold by the average inventory. average inventory by cost of goods sold. 2. The order of presentation of nontypical items that may appear on the income statement is (Points: 4) Extraordinary items‚ Discontinued operations‚ Other revenues and expenses. Discontinued operations‚ Extraordinary items‚ Other revenues and expenses. Other
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For the electronic version of the solutions manual‚ please refer to file: Build a Spreadsheet 13-29.xls Exercise 13-34 1. Transfer price = outlay cost + opportunity cost = $320* + $100† = $420 *Outlay cost = unit variable production cost †Opportunity cost = forgone contribution margin = $420 – $320 = $100 2. If the Fabrication Division has excess capacity‚ there is no opportunity cost associated with a transfer. Therefore: Transfer price = outlay cost
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applications the method helps managers to make decisions based on the results by varying different variables such as selling price‚ variables cost‚ etc. This altering of variables to determine the net effect of changing original estimates is called sensitivity analysis. Using the computerized application of CVP‚ managers can study various combinations of ‘changes in selling price‚ fixed and variables and assess their effect on profit’ (SWTAFE‚ 2012). Based on the CVP analysis of the three business
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Finance in Hospitality Management Course: HND in Hospitality Management Module Tutor: Student: 1.1 What are the main sources of finance to a business? Classify them according to short-term and long-term categories
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affected by the following five factors: selling prices‚ sales volume‚ unit variable costs‚ total fixed costs‚ and mix of products sold. (Brewer‚ 2010‚ p. 258) Additionally‚ CVP analysis is based on several assumptions including‚ (a) selling price is constant and a change in sales volume is the only factor that affects costs‚ (b) costs and revenues are linear throughout relevant range‚ (c) costs can be divided into fixed and variable components throughout relevant range‚ (d) sales mix doesn’t change‚ and
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