Contribution

Submitted by Yellow Team Eunice King Ronda Klassen Joshua Krupnick Larry McCraw Ronald Mills BUS 5431 Managerial Accounting Professor Nancy Shoemake April 18, 2010 1.0 Summary Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even

Assuming that BB requires a 13% return on investments of this type, should the firm relax its credit standards? | | | | | | | | | | Current: | | | | | | | | | | | | | | Additional profit from sales = change in sales * contribution margin | | | | | = (.038 * $43,803,000)($1.5 - $0.5126) = | $ 1,643,541.12 | | | | | | | | | | | | Cost of marginal investment in Accounts Receivable: | | | | | | Total Variable Costs of annual sales = $43

CVP Analysis Introduction According to “Snap Fitness,” (2011), “economically, the health club industry has proven to be recession-proof, averaging an 8% annual growth rate since the early 1990’s across all health clubs and gyms,” (Fitness Franchise Opportunities). Snap Fitness franchising offers opportunities for entrepreneurs to open a successful business that has already allocated the following benefits and services for consumers and for the franchisee:  Location of fitness needs is open 24/7

Snapdeal: Will the E-commerce be Profitable Management Accounting Assignment Faculty of Management Studies Delhi Presented By: Aamir Abdulaha Akhon- F 201 Kunal Chand- F 228 Tarun Kumar- F 256 Subject Area Kunal Bahl, Chief Executive of Snapdeal.com is very much confident that Snapdeal will be the first e-commerce in India to turn Profitable. He along with his friend cum business partner Rohit Bansal has taken conscious decision to stay away from developing into inventory based models like

Calculations: Break even  $4889/ 0.458 point in sales  =$10674.67 thousand dollars Break even  $4889/ 0.712 point in number =6866 units of sales tickets Contribution  Sales $10711 Margin format -VC $5799 CM $ 4912 Net Income $887 Contribution $4912/10711 Margin Ratio =0.458 Contribution  $4912/6897 Margin per unit =$0.712 Price per unit $10711/6897 =$1.55 4. Here it is seen that the opposite of answer 3 happens. Both the point of break

In sales dollars? The break-even volume in units =Fixed Costs ÷ Contribution Margin per Unit =$1,560,000÷$830=1,880 units (rounded) Contribution Margin Ratio = Contribution Margin per Unit÷Units Selling Price=$830÷$1,580≈52.5% The break-even volume in sales dollars = Fixed Costs ÷ Contribution Margin Ratio =$1,560,000÷52.5%≈$2,971,428.57 3. Market research estimates that monthly equipment production could be increased to

750-$679300= $99,450 for Titanium and using the same formula above TCM for CarbonLite is 27,750. This gives us a combined contribution margin of $127,200. Some management prefers to view the break even points via a percentage, in which case we would need to derive the contribution margin as a ratio. This would be the unit contribution margin/ unit sales price. Contribution Margin Ratio: $96,950/$778,750 =.13 Titanium $27,750/679300=.04 CarbonLite

50) = 500,000 Units Total = 384,000 + 297,143 + 500,000 = 1,181,143 Because each product has a different contribution margin percentage, the volume required for each break-even point would be different and will not add up to the company’s overall break-even volume of 1,100,000 units; the overall break-even volume assumes that there is only one contribution margin percentage which is : Unit sales price = $7.20 [(10 + 9 + 2.4)/3] 100.00% Variable cost/unit

Competition Bikes Finical Analysis Dan Petersen WGU – JET2 Finical Analysis Task 4 A. 1. To: Vice President This report has been prepared to argue the case that the company’s current costing method should be changed to the activity based costing method. This report will review; the difference between traditional based costing and activity based costing; traditional split and allocations with activity based costing; and discusses the breakeven point for Competition bikes Inc. with

Executive Summary Lille Tissages, S.A is a French company located in Lille. It was the largest company in the textile industry in France. During its activity, the company got in 2003 a good year with sales exceeding FF96million. One of the items of the company, Item 345 - a sole product for the company - saw its price raised in 2002 from FF15 to FF20 a meter. This decision has been taken in order to strengthen the capital position. However, the competitors kept their price at FF15 for