Variable Cost Essay

the relevant cost is the cargo cost only. Therefore, profit contribution of carrying I ton of tapioca from Balik and Singapore: Expected revenue $5.10 Less freight cost (0.25+0.56) 0.81 Profit Contibution 4.29 From Singapore to Balik: Expected Revenue $2.70 Less freight cost (0.16+0.32+0

Exhibit 2 contains both fixed and variable costs within the report. Other costs we must look at is the opportunity of the purchased computer equipment, which has a value of roughly $25,500. The leased computer equipment cannot be cancelled, thus we consider it a sunk cost and do not take it into consideration. Next, we look at the purpose of creating PDS. The purpose was to help deregulate PTC and rescind the push through of a rate increase. If they shut down PDS, PTC would have to pay the market

Fixed Costs: Fixed costs are the costs that are independent of the amount of goods or services produced by the business. For example rent, salaries. For fixed costs, you have to pay them even if you do nothing. Variable Costs: A variable cost can vary in relation to the amount of business activities. For example raw material, energy usage, labour, logistics, etc. Marginal Costs: It can be defined as the additional cost (increase or decrease)

1. Which of the following would increase the likelihood that a company would increase its debt ratio in its capital structure? a. An increase in costs incurred when filing for bankruptcy. b. An increase in the corporate tax rate. c. An increase in the personal tax rate. d. None of the statements above is correct. ANSWER: B An increase in the corporate tax rate would mean that firms would get larger tax breaks for interest payments. Therefore, firms have an incentive to increase interest payments

the cost concept of TVC total variable cost shows a company the total cost of all the variables with in the company; variables such as materials, production labor and others. The total variable cost depends on the quantity the more the company produces the greater the total variable cost will be. This information is important to a company because if the price of production be greater that the price set the company might decide to produce noting avoiding variable cost The cost concept TFC total fixed

|Course Code |MBA 625 |Course Name |Corporate Finance | |Date | |Due date |Week 4 | |Maximum Marks |100 |Weight |20% | |Learning Outcomes |LO1, LO2 ,LO3,LO4,LO5

Score 0/4 Your response Exercise 5-1 Fixed and Variable Cost Behavior [LO1] Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22. Requirement 1: Fill in the following table with your estimates of total costs and cost per cup of coffee at the indicated levels of activity for a coffee stand. (Round average cost per cup of coffee to 3 decimal places. Omit the

HSM/260: Fixed Costs, Variable Costs, and Break Fixed Costs, Variable Costs, and Break Exercise 10.1 During the sixth month of the fiscal year, the program director of the Westchester Home-Delivered Meals (WHDM) program decides to again recompute fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500

Manufacturing, Inc. produces snow shovels. The selling price per snow shovel is $30. There is no beginning inventory. Costs involved in production are: Direct material $5 Direct labor $4 Variable manufacturing overhead $3 Total variable manufacturing costs per unit $12 Fixed manufacturing overhead cost per year $180,000 In addition, the company has fixed selling and administrative costs of $160,000 per year. Exercise 5-11. During the year, Summit produces 50,000 snow shovels and sells 45,000

the results of all the statistical tests that have been performed by this study. The correlation analysis was performed between the primary variable of FEP Cost % and the Cost Performance, Schedule Performance, Change Cost % and Schedule Change %. The results show that there was a positive correlation between the effort allocated to Front-End Planning and the cost performance of the project in DB system, Complex projects and Renovation projects. The schedule performance was affected positively by the