Variable Cost Essay

product will need advertising and sales promotion activities to promote customer awareness. The company will have to plan strategies satisfying the competition in market. As the product is new, initially it will cost more, the company should analyze other revenue sources to meet the cost of expansion. The risk that should be taken into consideration with the project would be the ability to have an adequate cash flow to justify the $42,000- investment for the equipment purchased. When the equipment

Case Analysis Executive Summary: As the population of cats in North America increases, so does the ownership of them as pets. Omega Paw’s novel and unique litter box, self-cleaning with a closed top, has tapped into the market with customer satisfaction and positive reviews. The company looks forward to reflect this positivity with an increase in sales and profit levels. Introducing the product in grocery stores would result in weekly sales of $126,000, highest among other alternatives. With direct

•Allows hours of operation to expand to 7 AM to 7 PM. •Provides grounds to schedule an additional 65 employee exams per month •Provides overlap to decrease wait time during lunch time hours. Add physician and increase hours •Increases personnel cost by 33%. •Doubles physician expense for a total of $288,888 (with 5% increase) Recommendations In order for the Downtown Health Clinic to maintain there financial strength in the hospital market I think there are a few alternatives which will give

intensified the issues the organization looked at the time. Its German rivals BMW and Mercedes reacted to this test by setting up and extending generation offices in the United States. By expanding their dollar-cost base, they were attempting to coordinate dollar incomes with dollar costs. Porsche picked not to go down this course of building up such a "characteristic support." Instead, it depended on outside trade subordinates to fence its presentation to remote trade

period of years, and the burden of the investment will be felt less over the years. This will also minimize the risk of a bad investment, as Living Woods is able to return the machinery if it does not work out as planned. Though, in some cases, the cost of hire purchasing equipment ends up to be much higher than the initial amount. Living wood could possibly raise capital by selling their fixed assets; however this might not be the best decision. The fixed assets could include land and machinery

2-17 2. Which costs will change with a decrease in activity within the relevant range? A) Total fixed costs and total variable cost. B) Unit fixed costs and total variable cost. Answer C) Unit variable cost and unit fixed cost. D) Unit fixed cost and total fixed cost. 3. An increase in the activity level within the relevant range results in: A) an increase in fixed cost per unit. B) a proportionate increase in total fixed costs. C) an unchanged fixed cost per unit. D)

Another source of funding is Grants. Based on our geographic location and demographics, we qualify for funding from several different foundations that provide grants to community facilities that need financing for building cost to expand on their facility. Now that we have been approved for our new renovation and the addition of many more services, we have $3 million dollars we can add to our operations budget as funding for this new expansion. Methodology in Revenue

Company is a diversified packaging company with several major divisions, including the Aluminum Can division which is one of the largest manufacturers of aluminum beverage cans in the United States. The Aluminum Can division has to meet customers’ cost and quality specifications or their standards for delivery and customer service, otherwise, customers would choose other available suppliers. Thus, it is important for the company to implement rigid budgetary control system and performance measurement

ABC Company Growth and Expansion Analysis Abstract In this report you will find analysis on the growth in sales and expansion plan of the ABC Company. Further analysis is performing on the purchases of equipment by the help of Net Present Value method. Various risk factors which affect the plans are also discussed in this report. At the final stage recommendations are also suggested to the management of the company. Risk Profile of the Company: Intentions of the company are risky as it is increasing

C-Direct Labor during September C $3,460.00 $9,090.00 D-Direct Labor from beginning of September D $2,450.00 E-Overhead from September E $1,225.00 F- Overhead from September F $1,730.00 G- Cost for Job A-3 $17,665.00 H- Cost for Job A-4 EB $8,575.00 I- Cost for Job A-5