Variable Cost Essay

       Direct Labor - yes,    Period Cost - yes        Direct Labor - yes,     Period Cost - No        Direct Labor - no ,    Period Cost - yes        Direct Labor - no ,    Period Cost - no 2. (TCO A) Machinery Depreciation on a manufacturing plant is an element of:        Conversion cost - yes, period cost - no        Conversion cost - yes, period cost - yes        Conversion cost - no, period cost - yes        Conversion cost - no, period cost - no 3. (TCO B)  Evergreen Corp

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

realizes a cost of $55 for every unit it produces. Its total fixed costs equal $2 million. If the company manufactures 500,000 units compute the following: a) unit cost- unit cost = variable cost + fixed cost/unit sales x= $55 + $2,000,000/500,000 = $59 unit cost b) markup price if the company desires a 10% return on sales- unit cost/(1 – desired return on sales) $59/(1 - .10) = $65.56 c) ROI price

       Direct Labor - yes,    Period Cost - yes        Direct Labor - yes,    Period Cost - No        Direct Labor - no ,    Period Cost - yes        Direct Labor - no ,    Period Cost - no | 2. (TCO A) Machinery Depreciation on a manufacturing plant is an element of: (Points : 7)        Conversion cost - yes, period cost - no        Conversion cost - yes, period cost - yes        Conversion cost - no, period cost - yes        Conversion cost - no, period cost - no | 3. (TCO B)  Evergreen Corp

Project: Finance for Managers Table of content 1. Mission Statement 2. Company’s profile 3. Market Dynamic: SOTW 4. Case 1 & results 5. Case 2 & results 6. Evaluation Mission Statement We are committed to provide an outstanding experience in Automotive and associated businesses to all our customers through superior value products and services. | | | | | SSFF as a company is one of the reliable importers and distributors of automotive spare parts in Pakistan

CHAPTER 5 Cost-Volume-Profit ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. 2. 3. 4. 5. Distinguish between variable and fixed costs. Explain the significance of the relevant range. Explain the concept of mixed costs. List the five components of cost-volume-profit analysis. Indicate what contribution margin is and how it can be expressed. Identify the three ways to determine the break-even point. Give the formulas for determining sales required to earn target net income. Define margin of

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

000 $ 240,000 Retained earnings $ 220,000 $ 270,000 Total liabilities & stock, equity $ 750,000 $ 730,000 The firm 's accrual-basis income statement revealed the following data: Sales $ 1,200,000 Cost of goods sold $ 800,000 selling and administrative expenses $ 250,000 Depreciation expense $ 70,000 Income taxes $ 30,000 Dividends declared and paid during 20X2 $ 100,000 ABC purchased $100,000 of

PROBLEMS 1. Gilley, Inc., sells a single product. The company's most recent income statement is given below. Sales (4,000 units) Less variable expenses Contribution margin Less fixed expenses Net income Required: a. b. Contribution margin per unit is If sales are doubled to $240,000, total variable costs will equal If sales are doubled to $240,000, total fixed costs will equal If 10 more units are sold, profits will increase by Compute how many units must be sold to break even. Compute how many units

lines in order to boost sales to reach those targets. The company knows that it will create large expenses opening new production lines, however, they are confident the additional revenues generated by the growth will more than make up for the added costs the original investment. The plan to make cedar dollhouses out of scrap shingles will allow ABC to generate revenue of higher than $3 million over the preceding three years, as opposed to the $1.2 million in its established product lines. A risk profile