Andre’s Hair Styling Essay

QUESTION 2: What total contribution is required to cover the new fixed costs and earn $500 profit per issue?

Since our company’s main focus is premium products we will aim for high contribution margins, around 50%, on average, over all five products. After establishing our company brand and products within the market we will look to increase contribution margin to be between 55%-60% over all five products.

Q6: How much production fixed expenses should be allocated to 1 kg of "complete meal"? Give a specific number and your logic to support the

13. If the selling price is $22 per unit, what is the contribution margin per unit sold?

ABHC is a currently an e-commerce business, and its sales are made through the website 50% of the time and the other 50% are in person. Customers can go on to the website to design the elements of their custom wig, choose different hair textures, colors, and lengths. This feature offers customers a unique feature. ABHC website is currently provided through a host site “Wix” which provides the company many services such as data analytics and payment services.

1. The local Mastermind store sells innovative educational toys. Part of their service is giving advice to customers about the best toys for a particular age group, which requires having more customer service representatives in the store. During the month long Christmas buying season, it makes half of its $500,000 yearly sales. Its contribution margin on average is 40% and its fixed costs for the year are about $150,000. The owner believes that she could make even higher sales, if she had more customer service representatives on the floor during the peak season. She plans on hiring four more people for 200 hours each at $20 per hour. How much additional revenue does she have earn to the nearest dollar

Unit contribution = Unit Price – Unit Variable Cost = $1.80 – $1.40 = $0.40

If Marlene Herbert were to discontinue place mats, he would miss $270,000 that will go toward Mendel paper company fixed cost. The company currently has a plant overhead that is estimated at $420,000 for the quarter. In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000. This draws the company to a total fixed cost of $538,000. If Marlene Herbert were to discontinue the second highest contributor to the fixed cost, he would need to increase the volume of computer paper and lower material cost to help pull the contribution margin of the lowest product up to help support the lost of a whole product line.

The $320,000, on the other hand, is a fixed cost associated with the proposed addition.

Bogside Farm depends on migrant workers to pick its berries by hand, whereas Sterling Farm has invested in expensive berry-picking machines. Contribution margin ratio. This ratio indicates the percentage of each sales dollar that is available to cover a company fixed expenses and there profit. The ratio is calculated by dividing the contribution margin on the sales minus all variable expenses sales.

The total amount of the costs which should be matched with Revenues for 2003 is $71,129. This is done by taking the capitalization amount shown above (217,520), dividing it by the 200,000 unit estimate, and multiplying it by the units that were sold in 2003. The calculation is shown below.

For each distribution strategy, calculate the unit contribution and contribution margin rate for each of the two products line (necklaces and pairs of earrings). What is the weighted average contribution margin for an order at a trade show and an order with sale representatives?

1.When to think about utilizing as a portable beautician. The administrations of a versatile beautician may regularly be required to be utilized at a home for a wedding when it might frequently be awkward for the lady to go to a hair or excellence salon to have her hair and her make-up done, requiring her then to set out back to her home to put on her wedding outfit. Rather, the beautician will go to the lady of the hour's home so as to style the lady of the hour's hair for her extraordinary day. A portable hairdresser is regularly sought after for Care homes, doctor's facilities, penitentiaries, the military, and in numerous different circumstances where singular consideration is required.

As a result the projected sales will be approximately $7,475 - $8,625 per week. The first year projection outlook is derived by:

Forecast of $55,000 went up in contribution margin in year one and a stable growth of $15,000 in contribution margin yearly for the next four years. The return of investment period will be at year three of its operation.