Cru Computer Rentals

($372 + $135 + 500) / ($2.21 - ($0.83 + .40)) = 1,028 [+/- 31]

You discover that a product sale was made and recorded in December for $128,600; the product had not yet been shipped. The cost

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

May June July August September October November December Average Total Rooms Occupancy Occupied Percent 126 150 154 162 163 159 156 162 154 186 149 118 153 51.6% 61.4% 63.1% 66.2% 66.7% 65.3% 64.0% 66.4% 63.2% 76.4% 61.0% 48.3% 62.8% Total ADR $140.27 $139.29 $141.80 $140.20 $143.72 $141.90 $139.11 $141.54 $145.08 $157.36 $148.66 $137.38 $143.03

The break-even point for place mats is $50,000.00. This is found by the selling price per unit is $12.00. The variable price per unit of place mats is $3.60. $12.00 minus $3.60 equals $8.40. You then divide

$155M is the net revenue (profilt) per year which was found by dividing total revenue value of $1.2375B by 8 (i.e. $1.2375B/8)

Monthly 50% Monthly Rooms $2,956,500 $2,217,375 $1,478,250 Leases $180,000 $135,000 $90,000 TOTAL REVENUE $3,136,500 $2,352,375 $1,568,250 Expences TOTAL VARIABLE COSTS $454,000 $340,500 $227,000 TOTAL FIXED COSTS $1,403,000 $1,403,001 $1,403,002 TOTAL EXPENSE BEFORE IT $1,857,000 $1,743,501 $1,630,002 EBIT

Rent will be collected on a monthly bases. Monthly rent was determined by multiplying the sale price of the subject property by 1% and adding in utilities and addition fees. This amount was calculated to be $1,485 monthly for year one. Which is high for this area. Vacancy losses were determined by multiplying potential gross income by 10%. Miscellaneous income will be $500.00 for the first year in fees for maintenance, repairs, and so on. This amount will be charged every two years. This resulted in an Effective Gross Income of $16,535.06. Operating expenses are broken in two categories: fixed expenses and variable expenses. In the fixed expenses I estimate yearly taxes and insurance based upon local rates. For variable expenses, I will not incur any utility or garbage collection expenses as the tenants will be paying these. The repairs and expenses were estimated to be $250 each and incurred every other year for $150 thereafter. This results in our total operating expenses. The capital expenditures equal our tenant improvements of

Revenue = (205 hours x $400) + (180 hours x $600) = $82,000 + $108,000 = $190,000

1996 Customer Receiving Status 24 Status 40 Status 41 Status 42 Status 20 Parts Supplier I (unit) 8000 500 1500 1000 500 405 500 2000 R (unit/week) 1000 1000 700 405 405 405 405 1000 T (week) 8 0.5 2.14 2.47 1.23 1 1.23 2 Calculate The Average

Weekly profits have increased from $37,800 to $45,690 when 10 units of light weight compressors are manufactured; clearly showing that it’s a financially better off move.

2. The total expected cost per unit was $205.7 per unit and the actual cost per unit was $211.93 per unit. See Exhibit 2.

= ($3,600,000 + $1,071,429) ÷ ($205 - $85) = $4,671,429 ÷ $120 = 38,929 Passengers

Total Fixed Cost = $59,000 − ( $12 × 3,000 ) = $38,000 − ( $12 × 1,250 ) = $23,000