Augustine Medical Case

New Contribution Margin = New Price per unit – Variable cost per unit =$8.5-$2.5 =$6

- The impact on profit in 1966(before taxes) is the Contribution Margin of selling 30 tons.

When considering requests such as a new piece of equipment, staff training, and supplies for the unit, a manager must consider the overall budget, constraints, and variances. If equipment has a useful life of more than one year and exceeds the minimum cost level of the facility, the manager may request the cost originates from the capital budget of the facility (Yoder-Wise, 2012). Large equipment such as a patient lift, which costs $3000 per lift, would be beneficial to the staff and

Initial Capital Requirements: - Huge initial development period and very high investment costs, tooling costs, and WIP are necessary even before the company starts

One of specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?

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

The ICU should be equipped with a recliner in every patient room, therefore 12 more recliners need to be purchased. Signage inside the patient’s room can be made by printing and laminating the AACN Early Progressive Mobility Protocol from their website with minimal cost. Total estimated cost including 12 recliners and staff education time: $ 10,200. Re-teaching will be implemented at staff meetings on a quarter-yearly basis and the ICU nurses will have the opportunity to provide constructive feedback. HCAP statistics will provide data regarding length of stay in the ICU, Ventilator and Health-care Acquired Pneumonias and Wound care will contribute the data for Decubitus occurrence.

Finance. In order to finance our startup year, we issued stocks and borrowed loan to finance our operation and for safety in case the sales did not go well. Financing using stocks means that we are selling common or preferred stocks to individuals. In return for the money, they get some ownership over the company and its interest. This helps to bring public’s awareness about the company. If the sales suffice, we will pay the debt in the second round.

Consider a product line with 50% gross margins (after subtracting volume-related expenses from prices). The cost for handling an individual customer order is SEK 750, and the extra cost to handle a production order for a non-stocked item is SEK 2,250.

The wholesalers for the company received a 20% margin on sales billed at the price to retailers and wholesalers typically applied a markup on cost of 125% for carpeting sold to retailers.

To estimate variable costs, Tables F and I are needed. Table F shows the cost of goods sold averages 77.1% of sales (variable cost); Table I shows an average wholesale price for the seven competing brands of about $3.16 per six pack (about one gallon).

Hardy Hospital Case Study Answers PDF is simple as well as easy. Mostly you have to spend

Using $8.50 as the variable cost provided at the bottom of the case study and using $39.95 as the retail selling price as compared to $23.97 as the wholesale selling price (60% of the retail price), ServiSoft will realize a contribution margin of $31.45 with the retail distribution channel versus $15.47 with the wholesale distribution channel.

of the orders placed and 80% of the delivery expense. The foodservice channel accounts for 30%

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?