Variable Cost Essay

Many powerboaters and sailors of the waters of the Gulf Islands are familiar with Thetis Island’s two most prominent land features – Moore Hill and Burchell Hill. An exciting and ambitious project would see a new 16 hectare nature reserve on the slope of Burchell Hill, the high point on the west side of the island. Thetis Islanders chose the whimsical name Fairyslipper Forest Nature Reserve for the site, named after the fairyslipper orchid that dots the forest floor with its pink blooms every spring

for Midwest Office Products 1. Based on the interviews and data in the case, estimate: a. The cost of processing cartons through the facility 80000 total cartons Warehouse expenses = $2000000 Warehouse personnel expenses = $2570000-$250000 (truck driver expenses) = $2320000 Total warehouse processing expenses: $2000000 + $2320000 = $4,320,000 $4320000/80000= $54/carton b. The cost of entering electronic and manual customer orders Manual: .15 hours setup time, .075 hours to enter

Swing vs Steady a)Swing: Sales: 5000 Price per unit: $10 Variable Cost per unit: $2.5 Fixed Cost: $35000 Current Profit: $ 2500 New Price per additional unit: 0 New Contribution Margin = New Price per unit – Variable cost per unit =$8.5-$2.5 =$6 New Sales unit @40% additional sales= 5000*40%= 2000 Additional profit @40% additional Sales = Additional Sales* New Contribution Margin =2000*6 =$12000 New Sales unit @20% additional sales= 5000*20%= 1000 Additional profit @20% additional

1. Introduction Piele SA started a budget committee consisting of the chief accountant, a cost accountant, a technical director, and heads of the production departments. The committee was formed to help develop a budget using the zero-based budgeting system. Piele SA’s budget was based on the expected level of activity in sales that the firm expected to generate during the year. Piele SA started its budget from zero, and continued to re-evaluate and adjust targets throughout the operating year;

estimate the costs of producing the

1. Define managerial economics. Write its scope. MANAGERIAL ECONOMICS: Managerial economics, the name itself tells us it is the combination of both economics and the management. According to the great economist Dr Alfred Marshall economics mainly involves how a person gets his income and how he fulfils his needs with that income.in short economics is the study of man’s actions. Management include many activities done with the help of manager such as planning, organising, controlling and directing

Cost and Price Analysis Instructor: Name: Class: Finance 230 Date: Period: Results: 1) Why is it important for the government to exercise good fiscal judgment when spending funds? Government employees are held responsible for use of good judgment so those excessive prices are not paid. 2) List and describe four types of market based pricing. Be sure to provide at least one (1) example of each type. Competitive Offers – response to solicitation encouraging competing offers Established

MEMORANDUM TO: CEO FROM: CONTROLLER SUBJECT: EVALUATION OF NEW COST SYSTEM DATE: FEBRUARY 19, 2009 The purpose of this memo is to discuss and evaluate our traditional cost based system versus the new activity based or discrete product costing system. I am going to highlight some of the positive aspects of the new system, discuss future scope and improvements along with some deeper analysis into our unprofitable products and customers. Over the years, many of our managers and higher officials

below for its current month’s activity. Using this information, prepare a flexible budget analysis to determine how well Silver City performed in terms of cost control. Actual Costs Incurred Static Budget Activity level (in units) 5,250 5,178 Variable Costs: Indirect materials $24,182 $23,476 Utilities $22,356 $22,674 Fixed Costs: Administration $63,450 $65,500 Rent $65,317 $63,904 2.

new product launch of Mountain Man Light (MMLight) for Mr. Chris Prangel, the future owner of the Mountain Man Beer Company (MMBC). More specifically, the memorandum will consider the advantages and disadvantages of launching MMLight, as well as a cost-volume-profit analysis of the proposed new product launch. The memorandum will conclude with recommendations for Mr. Prangel’s consideration. MMBC’S GOALS AND BRAND IMAGE MMBC has retained leadership among premium lagers in West