Fixed cost

Exhibit 5 shows the breakdown of fixed costs. Exhibit 6 shows corresponding contribution margin for compensation based on a fixed fee as well as a 100% variable fee. If we assume Alltel would pay the talent 90% of ticket prices, which would vary slightly depending on talent, while maintaining the same facilities charge and service

A History of the World in Six Glasses SPIRITS 1. From which advanced civilization/culture did Europeans get the “science” of how to make spirits? The Europeans got the “science” of how to make spirits from Córdoba in southern Spain, the capital of Arab Andalusia. 2. In what ways was the “discovery” and use of distillation important to the rebirth of science in Europe? How was distillation perceived and which infant science did it go hand in hand with, this probably leading to further work

focus on the cost behavior and how this will benefit the company when it comes to profit making, as the company managers do not clearly understand the relationship between business activities and the costs of those activities. It will then go on to discuss cost function and how it can be derived for this company. The last part of this report will focus into the company’s profit and how it can be predicted in relation to the changes in volume, costs and prices. It will look into the Cost Volume Profit

CHAPTER 1 Managerial Accounting and Cost Concepts ___________________________________________________________________________________ ______ Costs are split into two groups: Manufacturing Costs Nonmanufacturing Costs Manufacturing Costs: Direct Materials ​ - Materials that go into the final product Direct Labor - ​ Labor costs that can be traced into parts of the product Manufacturing Overhead - all manufacturing costs except direct materials/labor​ , such as ​ Indirect Materials, Indirect Labor

$20 per 10 gallon bottle and the company currently sells 2,000 bottles per day. Following is a summary of the company’s income and costs on a daily basis. Sales Revenue $40,000 Incremental Variable Costs $16,000 Nonincremental Fixed Costs $20,000 Note: You can assume that variable costs are constant so that the average of them is the variable cost relevant for a change in sales. One can calculate the change in sales volume necessary for the price change to be profitable by using

Internet Café Cost Summary 3  Here is a listing of costs to be incurred (pg. 3-4). How can we organize this data in a useful way? Equipment Waiter-tutors Manager Building lease Utilities Utility deposit Internet link Internet service Insurance Advertising, mktg, promo Pre-opening advertising Other up-front costs Miscellaneous admin/main Usage Qty Unit from Exhibit 1 180 hrs/wk 1 per month 1

$30 per unit) Fixed costs Total variable costs (1,000,000 units @ $18.80 per unit) Operating Income (EBIT) Interest (10.75% x $12,000,000) Earnings before taxes Taxes (35%) Earnings after taxes Shares Earnings per share * Fixed costs include $2,800,000 in depreciation $ 30,000,000 5,800,000 18,800,000 5,400,000 1,290,000 4,110,000 1,438,500 2,671,500 2,320,000 1.15 $ $ $ 2) Although there is more shares, the Earnings after taxes are now higher due to the lower variable costs, which compensates

two strategic financial plans, Plan L and Plan H. If Router adopts Plan H, it would support future growth of the company. This plan would have higher fixed costs but lower variable cost per unit. On the other hand, Plan L allows the company to remain its current no-growth business strategy. If Plan L is adopted, the company would have low fixed costs with the outsourcing strategy. PNC must determine the correct strategic approach among these two plans. Several issues the team need to address comprising

COST MANAGEMENT ACCOUNTING ANSWER 1.1 a) DIRECT COSTS:- A direct cost is defined as the price that can be directly applied to production of goods. The direct cost classifies direct material, direct labour and manufacturing overheads. The direct cost is related to labour, raw material and expenses related to the production of goods. Direct cost is simply as the cost that is applied directly to the product. For example- wages of full time and part time staff. b) INDIRECT COSTS:- Indirect

Chapter 12 Determining the financing mix I. Risk * Variability associated with expected revenue or income streams. Such variability may arise due to: * Choice of business line (business risk) * Choice of an operating cost structure (operating risk) * Choice of Capital structure (financial risk) a) Business Risk * Variation in the firm’s expected earnings attributable to the industry in which the firm operates. There are four determinants of business risk: