Contribution margin

Cost behavior refers to how specific do costs react to fluctuations in the level of the business activity (Weygandt, Kimmel, & Kieso, 2009). Cost behavior is one of the most important concepts in managerial accounting as determining how a cost will behave is critical to planning, decision making and controlling. In order to analyze cost behavior patterns and make decisions, costs are divided into 3 types; fixed, variable, and mixed costs(Smith, 2002). Breakeven analysis is one of the important…

Break-Even Analysis The restaurant industry is notoriously difficult to succeed in. Quite often, restauranteurs dedicate their time, effort, and capital, without even making a profit. Before future restaurant owners wade into these treacherous waters, they should first know whether or not their concept is feasible. There are many useful ratios and calculations that can help determine feasibility, however, few calculations are as important to a business owner as a break-even analysis. This…

provide clear picture of analytical and also what if type of questions. Although CVP analysis is simple but it is useful in commercial operations. Following are some of approaches to CVP analysis: revenue and cost formula, graph of profit and contribution margin. Assumptions of CVP Analysis The CVP analysis is based on some of the assumptions. Following are some of assumptions considered:  The all cost can be divided into fixed cost and variable cost.  The changes in the level of revenue and…

It is an indication that the company is efficient in generating income on new investment. GROSS PROFIT MARGIN Formula: Gross Profit Margin = Gross Profit / Gross Sales X 100 Computation Average Gross Profit Margin This ratio shows how efficiently that ChixChops using its materials…

His printing experience started in 1438, created the press in 1440, and printed the 42-Line Bible in 1454-1455. Gutenberg contributed the invention of the print and press and the 42-Line Bible to the Renaissance. During the Renaissance Gutenberg contribution 6 print and presses. Encyclopedia of the Renaissance Sates, “The essence of Gutenberg's invention was his method…

drivers and the trailer pool expense. Fixed costs are not relevant as they will be incurred regardless if Overland accepts the deal or not. These expenses are a fixed amount that do not fluctuate with the number of shipments the company does. 2. The contribution of each mile is $0.76. FHP proposed a price of $2.15/mile that Overland could charge for line haul, fuel surcharge and miscellaneous fees. The variable costs incurred are $.06 for insurance, 0.78 for fuel, 0.01 for oil lubricants, 0.01…

practice in nursing around the world. Papers must demonstrate clinical practice and international relevance, and make an important and new contribution to the field. A statistician should be used for quantitative studies, and this individual must be included as one of the authors. Papers…

idea ever had by the company management. The iPhone reinvented the cell phone technology that highly the biggest victory for Steve Job vision, and leadership styles that world will remember as the pioneer and intellectual that makes meaningful contribution to human…

The New York Times article entitled “Many Children Under 5 Are Left to Their Mobile Devices, Survey Finds,” written by Catherine Saint Louis, includes mostly comprehensive depictions of a survey conducted by Pediatric AAP Publications. The original survey is called “Exposure and Use of Mobile Media Devices by Young Children.” The NYT publication displays the findings of the survey completed in Philadelphia, in which the group of subjects were comprised of consenting parents. Through an in-depth…

made huge investment to increase the automation level for the Low End products, our company gained a cost leadership advantage in the beginning. This strategic advantage allowed us to win the highest market share by reducing prices without contribution margin declined. Erie appeared to be our strongest competitor in this segment since they also increased their automation level to ten at the very beginning, which means that the cost leadership advantage is not our dominated advantage leading us…