Cost Accounting

In this analysis, we included the overhead expense for 1972-1977 because as the project begins to gain a foothold in the market it will acquire a larger market share and will become a larger portion of General Foods’ overall dessert sales. Also, the agglomerator and excess capacity was charged

Management has decided that the suggested retail price for the 8-ounce can to the consumer will be $1.00. The only unit variable costs for the product are $0.36 for materials and $0.12 for labor. The

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).

When price is $20.6, the quantity is 1,242,425 and profit is $101, we come near to break even point.

operating expenses were usually excluded and prices were a function of food cost, as well

by the number of cases an employee could pack in one hour (12), which gives a cost of $0.71 per case. If you

“the extra produce costs school districts $5.4 million a day, with $3.8 million of that being tossed in the trash, according to national estimates based on a 2013 study of 15 Utah schools by researchers with Cornell University and Brigham Young University” (Watanabe).

Jointly funding the U.S. Peanut Resources and Efficiency Measures Report conducted by the independent research firm IHS Global Insight, which found major potential improvements in farming practices among U.S. peanut farmers as they are its major suppliers . Dairy ingredients

However, there are several factors for the company to choose its pricing strategy. In this case, it may be better if the company choose to sell its product at $21.50 instead of $15.50. This is due to the fact that price-cutting appears to be not a good strategy in this industry. If every player in the same industry starts to lower the price of their products, every company will end up having the low price, which in turns lead to a low profit margin. Moreover, referring to the calculation in a below table, it also implies that if the price is lower than $12, sales will not be able to cover the variable cost incurred, thus it will bring about a loss in net profit.

This will result in a surplus of 4,000 ice creams, and you could expect the price to go down in order to sell the surplus.

The USDA claims that each year, 25.9 million tons of America’s food is thrown away, the equivalent to a quarter of the total amount produced. Nationally, the wasted food is a damaging financial setback, amounting to $1 billion just to get rid of during a time of ascending food prices, nonetheless (Oliver, 2007). Food waste has skyrocketed since 1970 at an astonishing 50% increase rate, yet according to the FAO, one-sixth of America doesn’t get enough to eat.

Thus, the firm should sale 44,461.54 kg at retail price of 6.85 to achieve the same profit impact as selling 30 tons at retail price of 8.20.

Normally if you are not making a profit then you are probably just breaking even. If the total revenue equals the total costs it is breaking even. The honey farmers costs maybe higher than the big size companies but the midium size companies may still be low enough to break even at the market price.

Average Inventory at Cost is $1,000. Say you have gross profit margins of 20%. If you sell $5,000 per year of this product, you make 20% of that or $1,000 in gross profit.

The price is set based on the production cost and the margin that the company desire. According to Ms Chan, the margin of one package of snacks that sell in the store is around 20%. Therefore, if a snack is selling at RM 10, they only have RM 2 as their net profit.