Explore BrainMass

Explore BrainMass

    Cost-Volume-Profit Analysis

    BrainMass Solutions Available for Instant Download

    Basics of CVP analysis: Cost Structure

    Sales(19,500 units x30 per unit) 585,000 less variable expenses 409,500 contribution margin 175,500 less fixed expenses 180,000 net operating loss (4,500) 1. Compute the company's CM ratio and its break-even points

    CVP Analysis Graphing

    Per Price of Shoes Selling Price 30.00 Variable Expenses Invoice Cost 13.50 Sales commission 4.50 Total Variable expenses 18.00 Annual Fixed Ex

    CVP Analysis to Compute the Contribution Margin Ratio

    1. Compute the contribution margin ratio for the rooms department. 2. Compute the Baker Inn's weighted average CMR. 3. Compute the Baker Inn 's breakeven point. 4. If the Baker Inn wants to make $1500000, what must its room sales equal? 5. If the Baker Inn desire a pretax cash flow of $500000, what must its total revenue e


    PROBLEM: Marjolein & Co. makes a designer alarm clock that sells for $20 per unit. Variable costs are $6 per unit, and fixed costs total $210,000 per year. Required: Answer the following independent questions: 1. What is the product's CM ratio?? 2. Use the CM ratio to determine the break-even point in sales dollars.

    CVP Analysis & Income Taxes

    Diego Motors is a small car dealership. On average it sells a car for $25,000 which it purchases from the manufacturer for $22,000. Each month, Diego Motors pays $50,000 in rent and utilities and $60,000 for salespeople's salaries. In addition to their salaries, salespeople are pain a commission of $500 for each car they sell. D

    CVP Analysis for Multiple Companies

    Last Year Easton company reported sales revenues of 720,000 a contribution margin as a percentage of sales revenue of 30% and fixed costs of 240,000 based on this info the break even point in sales dollars is? 640,000 880,000 744,000 800000 none of the above Pool Company's variable costs ar 36% of sales revenue.Pool is c

    Cost Volume Relationship

    Cost Volume Profit Analysis With the possibility that the US Congress will relax restrictions on cutting old growth, a local lumber company is considering expanding its facilities. They can sell the lumber for .18 a board foot. The tax rate for the company is 30%. The company has the following two opportunities: 1. Buil

    Markline Company - Basic CVP Analysis; Cost Structure

    Basic CVP Analysis; Cost Structure (L03, L04, L05, L06). Due to erratic sales of its sole product - a disposable pocket camera - Markline Company has been experiencing difficulty for some time. The company's income statement for the most recent month is given below: Sales (30,000 units x $20.00 per unit) ..... $600

    Activity-Based Costing

    The Minnetonka Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cross-country ski line has been developed. Because of the

    Break-Even Analysis, Hospital CVP Relationships

    I need help with this break-even analysis question in the attached file. Susquehanna Medical Center operates a general hospital in northern Pennsylvania. The medical center also rents space and beds separately owned entities rendering specialized services, such as Pediatrics and Psychiatric Care. Susquehanna charges each sepa

    CVP and Predictions of Income

    In 1993 Izzo made operating income of $ 12,000 on revenue of $ 1 million from selling 75, 000 straps. In 1994 Izzo expected to sell 92,000 straps for $1.7 million. 1. Suppose the variables costs per strap are $ 10. Compute total fixed and total variable costs for 1993. 2. Suppose the cost behavior in 1994 was the same as

    ^-2 # 1 Breakeven

    1. Fast Buck Inc. sells a product at a unit price of $5.50, with a variable cost of $3.25 per unit. Total fixed costs are $360,000. a. Calculate the breakeven point. b. Calculate a 20% increase in volume above breakeven and determine its precise dollar impact on profits. c. Calculate the effect of a $.50 drop in

    Cost Volume Analysis & Strategy for Melford Hospital

    Provide a complete answer. Please see the attached file titled "7-3 Background Information" for background information. Please see the attached file titled "7-3 Analysis" for the associated strategic role CVP analysis plays. Problem: Determine the minimum number of patient days required for pediatrics to breakeven fo

    Cost-Volume-Profit Analysis and Strategy

    Provide a complete answer to the problem! Please see the attached file for background information. Problem: What is the strategic role of CVP analysis for the pediatrics unit of Melford hospital?

    Prepare a CVP graph and compute break-even point and margin of safety

    Please show how to make this graph as well. Thanks Embleton Company estimates that variable costs will be 40% of sales, and fixed costs will total $900,000. The selling price of the product is $5. a). Prepare a CVP graph, assuming maximum sales of $4,000,000. (Note: Use $500,000 increments for sales and costs a

    CVP analysis-Breakeven Analysis

    JetSet Machinations, Inc. expects to become very successful in the manufacture and sales of its fuel-efficient high speed airplane, the S2S-900. This plane will be sold at about $70 million per plane. JMI executive staff has asked you to provide them a slide presentation in the next staff meeting which gives calculations for pr

    Grant company...

    Grant company manufactured and sold 1,000 sabres during November. Selected data for this month is as follows: Sales $100,000 Direct materials used 21,000 Direct labor 15,000 variable manufacturin

    Cost Volume Profit Analysis

    What are some of the critical assumptions behind Cost-Volume-Profit Analysis and why is CVP typically used by organizations more often than time value money tools?

    Gosnell Company: Cost Volume Profit Analysis

    (See attached file for full problem description) --- Note: Gosnell Company produces two products - squares and circles. The projected income for the coming year, segmented by product line, follows: Squares Circles Total Sales $300 000 $2 500 000 $2 800 000 Product variable expenses

    Chapter 6: Cost - Volume Profit Relationships

    I use: Garrison, R. H. and E. W. Noreen. Managerial Accounting. 10th edition. Irwin McGraw-Hill, 2003. and/or Strayer Customized Text Managerial Accounting 2003. The following Exercises and Problems need to be addressed from Chapter 6 of the text: Exercise 6-6 Problem 6-9 Problem 6-17 Problem 6-20

    Allocation methodology

    Just help with the recap tab in excel , which allocation method is best and why you choose what you choose?? POR tab-questions under this tab CVP tab-questions under this tab --- (See attached file for full problem description) Jill's Jackets makes two types of Jackets: lined and unlined. Her accountant provided

    Cost Volume Profit Case Study

    Rusty casting makes two cast iron products: man hole covers and sewer grates. His accountant provided a income statement but Rusty needs more information to make some business decisions. Using the financial data provided, please do the following: 1. Determine the expense type for each expense on

    Cost Volume Profit Analysis (CVP): Contribution Margins and Break-even Point

    Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has 5 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. Assume that the only ser

    Case Study: Bremen Electronics-Breakeven Analysis: What would breakeven sales volume be? What level of sales would provide the target profit? 3) What would the manufacturing cost per unit be? What would be the profit if they sold 8,000 RC1 and 4,000 RC2?

    1) What would breakeven sales volume be, assuming a ratio of two RC1s sold for each RC2 sold 2) What level of sales would provide the target profit specified by the parent company of $210,000 for the year? (Assume that they sell all that they produce) 3) What would the manufacturing cost per unit be if they made and sold only

    Cost-volume-profit is briefly embodied.

    Which one of the following is NOT an assumption of cost-volume-profit analysis____> all costs are flexible (variable) or capacity related (fixed), units maufactured equal units sold, total flexible (variable) costs remain the same over the relevant range, or total capacity-related (fixed) costs remain the same over the rele

    Cost Volume Profit Analysis

    Thompson Company is considering the development of two products: no. 65 or no. 66. Manufacturing cost information follows. No. 65 No. 66 Annual fixed costs $220,000 $340,000 Variable cost per unit 33 25 Regardless of wh

    Cost-Volume-Profit Analysis is figured.

    Steve Stiff & Company management provides the following data for the year 2005 planning: Sales (1,500 units).............$ 25.00 per unit Variable Cost ...................10.00 per unit Fixed Costs ....................$ 15,000 Tax Rate ........................40% Desired Profit .................$60,000 Determin