Contribution

Name: ________________________ Class: ___________________ Date: __________ Quiz 2 1) Cost-volume-profit analysis is used primarily by management: A) as a planning tool B) for control purposes C) to prepare external financial statements D) to attain accurate financial results Answer: A Diff: 1 Terms: cost-volume-profit (CVP) Objective: 1 AACSB: Communication 2) One of the first steps to take when using CVP analysis to help make decisions is: A) finding out where the total costs line intersects

Analyzing Flare Fragrances Co., Inc. Joseph J Fortunato CR 504 Marketing Management May, 31, 2011 About Flare Fragrances: Flare Fragrances Company, a small women’s perfume manufacturer, was started in 1955. Since inception, Flare has grown to be the #4 player in the U.S. women’s fragrance market. For 2008 EOY estimates were $221 million dollars up 2% over 2007 sales. In 1975 Flare introduced the brand “Loveliest” which was their sole focus until 1996 when they introduced

Salem Data Services was established after an agreement was reached between Salem Telephone Company and the state Public Service Commission. Salem Data Service is a computer data service, which performs data processing for Salem Telephone Company. They also sell computer services to other companies and organizations. Since Salem Telephone company was a regulated utility it drove the need for Salem Data Services to be a separate entity since it was an unregulated utility. Even though Salem Data Services

Findings In order to understand the effects of opening the catering business, I looked at variable and absorption costing to figure out which method would be better suited for internal and external reporting in the past and future. In addition, I delved deeper to understand the cost breakdown of the new products which helped form a capital budget that will help us determine the validity of opening the catering business. Inventory Effect on Net Income For November, there was an ending inventory

Background Lehigh steel is a company which is involved in the manufacturing of specialty steels, which is used for high strength and high use applications. The steel manufactured by them, can be acquired in a variety of grades shapes and sizes. The demand in the steel industry is cyclic in nature and a large amount of costs are fixed. The company uses the standard costing system for calculating the cost of their products. The recession in 1991, caused a huge fall in the demand which had caused

and pricing the products affordably, we can gain customers’ loyalty and awareness. 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. Our company’s optimal balance is to have variable costs outweigh fixed costs unless our

expenses are $187,000. Generally, Xeller sells 6 practice models and 3 deluxe models for every professional model sold. 27) Refer to Figure 1. Using the sales mix stated in the facts from Figure 1 to form a package, what is the total package contribution margin? A) $850 B) $450 C) $520 D) $1,890 E) $587 28) Refer to Figure 1. What is the number of practice models sold at breakeven? A) 850 B) 220 C) 180 D) 1,320 E) 440 29) Refer to Figure 1. What

So it is $37.03 per customer * The contribution for each comp customer is $10.04= $13.09 (1.91+7.66+3.52)-$3.049. * So, with the assumption that 25% comp customers would attend: 37.03Q + 10.04 (.25Q) = $263,245 (total fixed costs) At breakeven, Q=6,658 paying customers who will be in attendance

Cost volume profit (CVP) analysis and costing for the 21st century has evolved into a very complex and difficult paradigm. Even the most gifted accountants find that grasping the entire concept of accounting for a corporation can be very mind-boggling and difficult. Yet, understanding such a fundamental principle can allow corporations to grow in ways that other, less educated, corporations can never dream to achieve and simultaneously understand the ‘bottom-line’. In this paper we will discuss value

! CHAPTER 19! Sample Exam Questions! 1. The four cost categories in a cost of quality program are! A. product design, process design, internal success, and external success.! B. prevention, appraisal, internal failure, and external failure.! C. design, conformance, control, and process.! D. design, process specification, on-time delivery, and customer satisfaction.! ! 2. Which of the following is not a non-financial performance measure for customer satisfaction?! A. Number of defective units