Fixed cost

In The Goal written by Eliyahu Goldratt, the main character, Alex Rogo, faces a simple yet complex problem of how to increases his plants profitability. From our Brewer textbook we have been learning how different activity levels affect operating income and how a manufacturing corporation can break even in terms of income and sales in chapter 5 of our Brewer textbook. In The Goal, Rogo’s plant is not meeting the demands of its clients and because of that, is not being profitable even through the…

assist him. To overcome any cons associated with servicing cars in this segment, Glenn should explore any possible was to cut his fixed costs, or possibly raise the price of his services marginally. Glenn believes that both segments, older car owners and mid-priced car owners, are only willing to pay $100 for his services. Glenn could possibly attempt to raise his costs with only mid-priced car owners because they may be less price sensitive than older car…

goods or services that a consumer typically buys together. A combination of goods or services that a consumer typically buys together The method of the budget constraint equals • The rate at which Hurley can trade mangos for fish • The opportunity cost of fish in terms of mangos The relative price of fish: • PRICE OF FISH / PRICE OF MANGOES =$4/$1 = 4 Mangoes per fish • How Changes in Income Affect the Consumer’s Choices • The change in consumption that resulting when price change…

to cover fixed costs This is a reality check. If the number of units is very high, then may need to review costs. Breakeven = Total fixed costs/(selling price – cost of goods sold) = number of units Answer : As we assume that fixed cost of the company will be $300,000 So, In order to get breakeven point company has be implement formula as below: Breakeven = Total fixed costs/(selling price – cost of goods sold) = number of units Where; Fixed cost for the company is $300,000 Selling cost…

58 was obtained from the budgeted production in April with the approximated direct material costs from direct materials budget. Meanwhile, the beginning finished goods balance is assumed to be $781.87. DelaSol Supply Co. does not hold a lot of finished goods in inventory from previous quarters because the company relies on their made-to-order and just-in-time inventory system which reduces its overall costs. Therefore, DelaSol only held around 20-30 inventories for each month. The $781.87 is…

variable cost is $1 per flange for materials, and $2 per flange ($20 per hour divided by 10 flanges per hour) for direct manufacturing labor. 2. The inventoriable (manufacturing) cost per unit for 5,000 flanges is $3 × 5,000 + $20,000 = $35,000. Average (unit) cost = $35,000 ÷ 5,000 units = $7 per unit. This is below Fred’s selling price of $8.25 per flange. However, in order to make a profit, Graham’s Glassworks also needs to cover the period (non-manufacturing) costs of…

much lower than budgeted. Other factors could be discussed here––for example, it seems that the PalmKid did not achieve much success with a three digit price point––selling price was budgeted at $149 but dropped to $102. At the same time, variable costs increased. This could have been due to a marketing push that did not succeed. 14-33 (20 min.) Market-share and market-size variances (continuation of 14-32). 1. Worldwide Aussie Info. Market share Actual Budgeted 500,000 400,000 110,000…

2002, 2003, and 2004. All 3 years are above average percentile at above 0.6. “A private nonprofit human service agency with a general and management/expense ratio greater than .35 should probably start thinking about ways of reducing administrative costs (Martin, 2001, p. 58)”. In 2002 the record shows that the general management and expense was 0.30, in 2003 it was 0.28, and in 2004 it was 0.23 which tell us that there is no need for concerns since it have not passed the 0.35 mark.…

Written Assignment Unit 3 Please note: Wikipedia, wiki’s, Answers.com, Ask.com, online dictionaries, or online encyclopedias may not be used as research sources for this project. As a senior level student you are responsible for independent research and for veracity of source. A search engine is not a source but a tool used to find the resource. For any internet article or information an APA reference must include the full and complete web address that will take the reader directly to…

1.1 Purpose The purpose is to analyse an issue regarding the cost allocation among divisions and how to better allocate the maintenance service cost internally and enhance the efficiency and motivation of their performance. 1.2 The issue The method provided by Johnson leads issue to the Delta Division because it cannot be implemented in an optimal manner. Additionally, Johnson promised that the Delta Division only needed to pay $10,000 monthly after the conversion of its maintenance service…