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Cost-Volume-Profit Analysis

Cost-volume-profit analysis for Provincial Airlines

Cost-volume-profit analysis Provincial Airlines is a small local carrier that operates passenger flights between the Atlantic provinces. 100% Newfoundland and Labrador owned, the airline services 13 destinations throughout Newfoundland and Labrador. After experiencing healthy early profits, the company has recently been bese

Flow of Inventoriable Costs; CVP analysis

Problem One: Flow of Inventoriable Costs. Hofstra Plastics' selected data for August 2008 are presented here (in millions): Direct materials inventory 8/ 1/ 2008 $ 90 Direct materials purchased $360 Direct materials used $375 Total manufacturing overhead costs $480 Variable manufacturing overhead costs $250 Total ma

Elimination of a product from operations

Body Sculpture Inc, makes three models of high performance weight training benches. Current operating data are summarized here: MegaMuscle PowerGym Proforce Selling price per unit $280 $400 $580 Contributi

Break even analysis for a geo-tracker device installed in Paul Scott's Cadillac

Paul Scott has a 2008 Cadillac that he wants to update with a geo-tracker device so he will have access to road maps and directions. After-market equipment can be fitted for a flat fee of $500, and the service provider requires monthly charges of $20. In his line of work as a traveling salesman, he estimates that this devise can

CVP Analysis Problem

Lockwood Company currently sells it's deadbolt locks for $30 each. The locks have a variable cost of $10, and the company annual fixed costs are $150,000. The company's tax rate is 40 percent. Required: Calculate the number of locks that must be sold to earn an after-tax profit of $24,000

Relevant Data Estimates: Price per visit for managers of a hospital

Assume that the managers of a hospital are setting the price on a new outpatient service. Here are relevant data estimates: Variable cost per unit- $5.00 Annual direct fixed costs- $500,000 Annual overhead allocation- $50,000 Expected annual utilization- 10,000 visits a. What per visit price must be set for the service

Find the contribution margin per haircut. Breakeven. Operating Income.

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all

Cost Volume Profit Analysis: CompTronics

Phoenix-based CompTronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42,000 speaker sets: Sales ...........................................................................................................................................

Providing Justification Using the Method of Cost-Volume Analysis

See the attachment. GearMatrix, Inc. GearMatrix makes gear components that it sells to automotive parts manufacturers. The company is in the process making a major capital investment decision to purchase a new Flexible Manufacturing System (FMS). It is considering alternatives from 4 different vendors of FMS machines. The

Cost, Volume and Profit

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $98 per unit, and variable expenses are $68 per unit. Fixed exp

Calculating Sales, Costs, Income and Financial Ratios

Please help with the following problem. Calculate the missing amounts for each of the following firms: (Negative amount should be indicated by a minus sign. Omit the "$" and "%" signs in your response.) Sales Variable Contribution Fixed Operating

Cost-Volume-Profit Relationship

Explain how a shift in the sales mix among 3 products (even if the total sales remain the same,as planned, say $500,000 ) could result in both a higher break-even point and a lower net operating income.

Technology of the Past CVP Analysis Anticipated Market Growth

CVP Analysis Technology of the Past (TOP) produces old-fashioned simple corkscrews. Last year was not a good year for sales but TOP expects the market to pick up this year. Last year's income statement was: Sales Revenue ($4 per corkscrew) $40,000 Variable Cost ($3 per corkscrew) $30,000 Contribution Margin $10,000 Fi

Concept of Contribution Margin in CVP analysis; format of income statement

Please see the attachment. Discuss the concept of contribution margin (CM). CM is the first step in arriving at CVP analysis. Discuss the importance of computing CM and how often you think organizations should track changes in CM. Do you think CM analysis can be performed at the departmental level? Do you think it can be

CVP

A division of XXXX Company changed its production operations from one where a large labor force assembled electronic components to an automated production facility dominated by computer-controlled robots. The change was necessary because of fierce competitive pressures. Improvements in quality, reliability, and flexibility of

CVP Analysis, Profit Equation

Clyde's Marina has estimated that fixed costs per month are $300,000 and variable cost per dollar of sales is $0.40. Required a. What is the break-even point per month in sales dollars? b. What level of sales dollars is needed for a monthly profit of $60,000? c. For the month of July, the marina anticipates sales of $1,

EXERCISE 4-11. CVP Analysis

Gabby's Wedding Cakes creates elaborate wedding cakes.Each cake sells for $600.The variable cost of making the cakes is $250,and the fixed cost per month is $7,700. Required a. Calculate the break-even point for a month in units. b. How many cakes must be sold to earn a monthly profit of $10,000?

Business Analysis

Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all

Review Questions

Problem #1 A company has a goal of earning $100,000 in after-tax income. The company must pay $28,000 in income tax if it achieves the goal. The contribution margin ratio is 30%. What dollar amount of sales must be achieved to reach the goal if fixed costs are $64,000? Problem #2 Thomas Company has total fixed costs of $

Basic CVP Analysis

The Fashion Shoe Company operates a chain of women's shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small basic salary) in order to encourage them to be aggressive

Revenue and cost

Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are presented below: Revenues Amount Charge Patients (6,000 Patient Days) $750,000 Fixed-Price Patients (20,000 Patient Days) $1,800,000 Total Net Revenues

Phoetronix: 2-65 CVP and Break-Even

2-65 CVP and Break-Even Goal: Create an Excel spreadsheet to perform CVP analysis and show the relationship between price, costs, and break-even points in terms of units and dollars. Use the results to answer questions about your findings. Scenario: Phonetronix is a small manufacturer of telephone and communications devi